Crude oil futures advanced on Thursday as dollar weakened against major foreign currencies and stock markets rose after better-than-expected Japanese economic growth.

Crude oil futures for January hovered around $89 per barrel recording its highest around $89.42, before moving back to around $88.86 by 6:12 am EST.

Futures advanced after a report showed that Japanese economy expanded more than initially expected in the third quarter.

Japan on Thursday said it still remained the second-largest economy in the world after its economy expanded more than the government initially estimated in the third quarter on higher capital spending. GDP grew at an annualized pace of 4.5 percent in the third quarter, faster than 3.9 percent reported last month.

On the economic front, traders will await US initial jobless claims data, which is expected to decline to 430,000 for the week ended December 4 against 436,000 of the previous week.

The US Energy Department said Wednesday in its weekly crude oil report that U.S. commercial crude oil inventories were down by 3.8 million barrels to 355.90 million barrels last week, but remain above the upper limit of the average range for this time of year.

On Wednesday, crude traded around $88 per barrel, recording its highest around $88.96 before moving back to around $87.32 per barrel and ended around $88.47 per barrel.