Oil prices went up Thursday as a string of better-than-expected economic data showed U.S. economy is improving.

The advance figure for seasonally adjusted jobless initial claims stood at 336,000 in the week ending Aug. 17, an increase of 13,000 from the previous week's revised figure of 323,000, the U.S. Labor Department said Thursday. The four-week moving average, a less volatile gauge, was 330,500, a decrease of 2,250 from the previous week's revised average of 332,750.

The preview of the U.S. manufacturing Purchasing Managers' Index for August provided by Markit rose to a five-month high of 53.9, higher than July's final reading of 53.7 and in line with market expectations.

Moreover, the Federal Housing Finance Agency (FHFA) house price index for June gained 0.7 percent after rising 0.8 percent in May, showing the housing sector continues to mend.

The better-than-expected PMI data out of China and euro zone also added momentum to the oil market. HSBC's preliminary reading of Chinese PMI for August surprisingly expanded for the first time in four months. Eurozone flash manufacturing PMI for August also rose to an over two-year high, according to market research group Markit.

Light, sweet crude for October delivery gained 1.18 dollars to settle at 105.03 dollars a barrel on the New York Mercantile Exchange.

Brent for October delivery went up 9 cents to close at 109.9 dollars a barrel.