SINGAPORE: Oil was mixed in Asian trade on Friday as market cheer over a successful Spanish bond sale was offset by downbeat US economic data, analysts said.
Rumours of a French ratings downgrade dismissed by government sources also rattled nerves and added to the subdued tone in the market.
New York's main contract, West Texas Intermediate crude for delivery in May, was up 21 cents to $102.48 per barrel while Brent North Sea crude for June shed five cents to $117.95 in morning trade.
"Eurozone worries eased on strong investor demand for Spanish bonds and as the recent price slump encouraged fresh buying," Phillip Futures said in a market commentary.
Spain one of the eurozone's debt-strapped economies paid a higher borrowing rate in a key auction of 10-year bonds Thursday but managed to keep it below the psychologically key level of six percent.
Rates above 6.0 percent are generally perceived to be unsustainable over the longer term.
Overall, Spain's Treasury raised a higher-than-expected 2.541 billion euros ($3.3 billion) in an issue of two and 10 year bonds, topping its target of 1.5-2.5 billion euros.
Investors were relieved by the result of the auction, initially fearing that a flop could unleash new attacks on Spain's sovereign debt, reigniting the eurozone debt crisis and thereby ravaging global energy demand.
However, a slew of weak economic data from the United States weighed on markets, analysts said.
US Labour Department figures released Thursday showed initial jobless claims fall by 2,000 to 386,000 in the week ended April 14, far short of the 375,000 expected by analysts, raising concerns over the recovery of the country's beleaguered labour market.
Existing home sales also decreased 2.6 percent in March from a month earlier, below analysts' expectations, the National Association of Realtors said, according to Dow Jones Newswires.
Rumours of an imminent rating downgrade in France just days ahead of a presidential election were also a cause of concern for investors, despite the fact that a government source rejected the idea.
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