Brent crude up

Brent crude futures clung to moderate gains Thursday as persistent worries over Europe's debt crisis took some of the steam out of an early rebound from a 4 percent dive in the previous session. Brent crude remained under pressure on liquidations ahead of front-month January's expiration at the close while US crude carried losses, as options on the January contract expire also at the close.
"Continuing worries about the eurozone debt crisis are keeping gains limited today, despite the positive US data on jobless claims and New York manufacturing activity. Investors are reassessing the market after yesterday's sharp drop," said Chris Dillman, an analyst at Tradition Energy in Stamford, Connecticut.
In London, ICE January Brent crude was up 57 cents at $105.59 a barrel by 12:50 pm EST (1750 GMT), sliding from the early high of $106.50. It fell $4.48 on Wednesday, posting the biggest one-day percentage loss since September 22 and breaking below its 300-day moving average of $107.08.
US January crude was down 88 cents at $94.07, having fallen from the session high of $95.99. It settled $5.19 lower on Wednesday, falling more than 5 percent, also the biggest one-day percentage loss since September 22, after dropping below the 200-day moving average of $95.98. Brent's premium against US crude widened to $11.61, highest intraday in two weeks, after closing at $10.07 on Wednesday.
US economic data showed jobless benefit claims fell unexpectedly to a 3-1/2 year low last week while growth of regional business in the New York and mid-Atlantic region were stronger this month. While the reports suggested a gradual improvement in the still-weak economy, the impact on commodities and equities prices was limited as US industrial production fell in November for the first time since April.
Factory output in China, the No 2 oil consumer, shrank again in December, a preliminary purchasing managers' survey showed, reinforcing concerns that manufacturers face waning global demand and tight domestic credit. Tensions spawned by Iran's nuclear programme remained supportive and fears about more sanctions against Tehran has created ripples elsewhere.
Turkey's Halkbank refused to open an account for India's BPCL to settle payments for oil imports from Iran, a sign that Tehran may struggle to redirect European volumes to buyers in Asia. The Organisation of Petroleum Exporting Countries on Wednesday agreed to an output target of 30 million barrels per day, ratifying current production near 3-year highs. The deal settled a six-month-old argument over supply policy firmly in Saudi Arabia's favour. But Opec the latest deal has no mechanism to cut quotas should already-fragile demand grow less quickly than expected.