Expectations of a short-term global decline in oil demand and a modest increase in U.S. unemployment sent crude oil prices lower in early Thursday trading.

Brent crude oil prices ended a string of gains Thursday to fall nearly a full percentage point to $65.07 per barrel. West Texas Intermediate, the U.S. benchmark, sold for $60.79, down 1 percent from the previous close.

The U.S. Labor Department said Thursday initial claims for unemployment insurance increased 2,000 to a seasonally adjusted 279,000 for the week ending June 6. Low oil prices have left workers in the energy sector struggling, though federal data show more jobs gained overall in Texas, the No. 1 oil producer, but fewer in North Dakota, the country's second-largest oil producer.

Crude oil prices have recovered from levels below the $50 mark amid signs the global economy is rebounding. Economic growth is tepid, however, as the U.S. economy is performing worse than expected.

Eurostat, the statistics office for the European Union, reported seasonally adjusted gross domestic product was up 1 percent from last year, while first quarter GDP in the United States was down 0.2 percent year-on-year.

The International Energy Agency said in a monthly oil market report global oil supplies declined by 155,000 barrels per day because of lower output from producers outside the Organization of Petroleum Exporting Countries.

On the demand side, IEA revised its forecast up, but said momentum is expected to ease during this quarter.