NEW YORK - OIL prices jumped above US$70 (S$105) a barrel on Thursday after the US government said that the economy may be faring better than previously thought.

WASHINGTON - FRESH signs of weakness in US job markets on Thursday underlined the strains faced by a recession-struck US economy that contracted slightly less in the first quarter than previously thought.

The Labour Department said the number of US workers filing new claims for unemployment benefits last week jumped unexpectedly by 15,000 to a higher-than-forecast, seasonally-adjusted total of 627,000.

NEW YORK - AMERICAN International Group said on Thursday it will reduce outstanding US loans by US$25 billion (S$37.5 billion) by giving the government a preferred stake in two units that will be spun off from the insurance giant.