Oil retreats on disappointing U.S. GDP, jobs data

U.S. crude oil price retreated on Thursday on the country's disappointing GDP results for the first quarter and increasing jobless claims last week.

The U.S. economy did not grow as hoped in the first quarter. The Commerce Department's second estimate for GDP growth came in unrevised at an annualized growth rate of 1.8 percent, lower than the forecast of a 2.1-percent rise. The first-quarter result remains notably softer than the 3.1-percent pace in the fourth quarter of 2010.

The Labor Department reported that initial jobless claims added 10,000 to 424,000 in the week ended May 21, 20,000 more than expected.

The disappointing U.S. data dampened the new oil demand, pushing cautious investors away from crude markets.

But the crude losses were limited by the weakening dollar and supply worries amid continuing violence in the Middle East and North Africa. The dollar weakened as the news that China was interested in buying bailout bonds for Portugal lifted the euro. The dollar index dipped about 0.5 percent.

Light, sweet crude for July delivery dropped 1.09 dollars, or 1. 08 percent, to settle at 100.23 dollars a barrel on the New York Mercantile Exchange. But in London, Brent crude for July delivery gained slightly and last traded around 115 dollars a barrel.

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