Economic uncertainty, highlighted by U.S. unemployment figures, put a throttle on crude oil markets, sending key indices into negative territory Thursday.
The U.S. Labor Department said Thursday advance figures for seasonally adjusted claims for unemployment for the week ending May 2 was 265,000, an increase of 3,000 from the previous week.
Oil prices rallied in May amid signs the energy market was moving away from oversupplies to a demand-centric situation as the global economy gains traction. Lower oil prices had depressed the economic outlook for governments that rely heavily on energy revenues, but provided a source of economic stimulus for consumers and consuming nations.
The price for West Texas Intermediate, the U.S. benchmark, fell 1 percent in early Thursday trading to $60.29 per barrel. WTI started the month at $59.19.
A U.S. treasury advisory committee this week warned that "even slight" increases in crude oil prices could throttle some consumer spending. On Wednesday, speaking alongside International Monetary Fund Managing Director Christine Lagarde, U.S. Federal Reserve Chair Janet Yellen warned that equity markets may be overvalued.
"There are potential dangers there," she said.
The early May rally for crude oil prices could be seen as a parallel to Yellen's comments that stocks may be overvalued. The U.S. Energy Information Administration expects Brent to average $58 per barrel this year and $75 for 2016. WTI prices for 2015 will average about $3 less per barrel than Brent.
Brent traded Thursday down nearly 1 percent to $67.15 per barrel.
Despite weekly gains, the Labor Department said the four-week moving average for unemployment claims was 279,500, the lowest level in 15 years.
