Crude prices fell on Thursday after seesawing as U.S. jobless claims rose unexpectedly and European Central Bank President Jean-Claude Trichet highlighted economic downside risks, although U.S. crude inventories decreased sharply.

Oil fell after the U.S. Labor Department reported Thursday morning that U.S. initial jobless claims added 2,000 in the week ending Sept. 3, missing estimates and pushing the 4-week average up to 414,750, almost 10,000 higher than one month ago.

The U.S. Federal Reserve President Ben Bernanke expressed Fed's willingness to boost the economic growth and to create jobs with all its efforts during his speech later on Thursday. As expected, he didn't unveil any details about further monetary stimulus moves.

Earlier in Europe, ECB President Jean-Claude Trichet highlighted the downside risks for EU's struggled economies after the united central bank left the interest rate unchanged. The euro tumbled 1.5 percent after the pessimistic economic outlook. The dollar index, instead, rose, pressuring the oil prices.

But sharp decline in U.S. crude inventories last week offered some lift. According to U.S. Energy Information Administration, U. S. crude inventories fell 4 million barrels in the week ending Sept. 2 due to big drop of oil import.

And the markets stayed hopeful for President Obama's speech at 7 p.m. Thursday, expecting a boosting package of 300 billion U.S. dollars to add momentum to the weak employment markets.

Light, sweet crude for October delivery fell 29 cents, or 0.32 percent, to settle at 89.05 dollars a barrel on the New York Mercantile Exchange, after trading from 88.59 dollars to 90.23 dollars a barrel.

In London, Brent crude for October delivery declined 1.25 dollars, or 1.08 percent, to close at 114.55 dollars a barrel.

Source:china