A slight gain in European economic growth competed against political factors and growth expectations Thursday to drag oil prices lower.

Eurostat, the statistics office for the European Union, reported first quarter growth rose 0.6 percent from the previous term. For the 19 countries that use the euro currency, GDP during the fourth quarter improved 0.5 percent.

Year-over-year, seasonally adjusted GDP rose 1.9 percent. In a statement on policy decisions Thursday, the European Central Bank said it was leaving its rates unchanged, though ECB President Mario Draghi said he expected growth to slow steadily to 1.7 percent by 2019.

The subdued growth forecast from Europe balanced against a mixed report on jobs from the U.S. Labor Department, which reported first time claims for unemployment for the week ending June 3 were down 10,000 from the previous week. Nevertheless, the government revised figures from last week higher by 7,000 and said the four-week moving average, a less volatile indicator of unemployment in the world's largest economy, was 2,250 higher than the previous week's average.

Demand factors have been an issue for the crude oil markets, where the price for major benchmarks fell below $50 per barrel, a level that was considered a durable floor for most of the first quarter.

The price for Brent crude oil was down 0.75 percent about a half hour before the start of trading in New York to $47.70 per barrel. West Texas Intermediate, the U.S benchmark for the price of oil, was down 0.9 percent to $45.31 per barrel.

Data released Wednesday from the U.S. Energy Information Administration showing a 3.3 million barrel increase in U.S. oil inventories led to one of the sharpest declines in oil prices so far this year. In a possible indicator of demand, meanwhile, gasoline stockpiles increased 3.3 million barrels, compared with an expected 250,000 barrels.

A risk factor may be percolating beneath the economic data as eyes in Washington focus on testimony from former FBI Director James Comey, who briefs lawmakers on his May 9 firing by President Donald Trump and the ongoing investigation into Russia's meddling in the U.S. election.

Meanwhile, British voters head to their polling stations Thursday in an election that's expected to give the party lead by Prime Minister Theresa May an edge. May is leading the push from Downing Street to divorce from the European Union.

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Statoil to drill in new Barents Sea prospect
Washington (UPI) Jun 7, 2017
Norwegian energy company Statoil can move ahead with a drilling program in the Barents Sea targeting frontier territory, the government said. The Norwegian Petroleum Directorate gave a drilling permit to Statoil to start drilling off the northern coast in a well designated 7219/9-2. "The drilling program for well 7219/9-2 relates to the drilling of a wildcat well in production li ... read more

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