Crude prices rebound after sharp decline

Crude price rebound Thursday after the market dropped significantly this week.

U.S. crude price touched 79.78 dollars, the lowest point since June 2012 in the early session. Then crude prices climbed and pared early losses as traders thought they were oversold.

Crude prices were dragged down recently mainly due to the forecast that crude supply surpassed the demand globally.

The International Energy Agency (IEA) Tuesday lowered its projections for global oil demand in the remaining time of this year and the next.

The IEA cut its global oil demand forecast over the next two months by 200,000 barrels per day compared to its previous projection. According to the agency, oil demand is projected to increase in 2015 from 2014, but at a slower growth pace than what was expected earlier.

The oil prices were also supported by the overall optimistic U. S. economic data out Thursday.

The number of Americans who initially applied for jobless benefits in the week ending Oct. 11 decreased by 23,000 from the previous week to a seasonally adjusted 264,000, the lowest in 14 years, said the Labor Department.

The Federal Reserve reported that U.S. industrial production increased 1.0 percent in September, beating expectations of a 0.4- percent gain.

Light, sweet crude for November delivery moved up 92 cents to settle at 82.7 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery rose 69 cents to close at 84.47 dollars a barrel.