Oil higher as investors draw hope from US economic data

Oil was higher in Asian trade today as investors focused on positive US economic data even as the Federal Reserve voiced worries about the world's largest economy, analysts said.

New York's main contract, light sweet crude for August delivery rose 14 cents to $76.65 a barrel.

Brent North Sea crude for August delivery was 19 cents higher at $76.66 a barrel.

"There have been some concerns because of the Fed's comments about the US economy which is still struggling to recover," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.

However, investors drew positives from the latest US labour data which could augur well for oil demand in the world's largest energy-consuming nation, Shum told AFP.

Data from the Labor Department on Thursday showed new claims for US jobless benefits fell to 457,000 in the week ending June 19, a decrease of 19,000 from the previous week's revised figure of 476,000.

Most economists had expected claims to fall to 460,000.

"So the report beat expectations and there are still some elements of data indicating recovery in the US," Shum said.

The Federal Reserve had on Wednesday raised concerns about the pace of the US economic recovery after it held key interest rates at historic lows of between zero and 0.25 per cent.

The Fed had maintained its federal funds rate target at these levels since December 2008 to help the economy recover from its worst recession in decades.

Household spending, which usually accounts for two-thirds of the country's economic activity, "is increasing but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit," the Fed said.