Investing.com - Crude oil futures extended gains on Thursday, as appetite for riskier assets improved after the European Central Bank indicated that it could expand its quantitative easing program if needed to boost the economy.
On the ICE Futures Exchange in London, Brent oil for October delivery tacked on 38 cents, or 0.76%, to trade at $50.88 a barrel during U.S. morning hours. On Wednesday, Brent futures rallied 94 cents, or 1.9%.
Elsewhere, crude oil for delivery in October on the New York Mercantile Exchange inched up 60 cents, or 1.3%, to trade at $46.85 a barrel. A day earlier, Nymex oil prices rose 84 cents, or 1.85%.
Market sentiment improved after European Central Bank President Mario Draghi said the central bank will use all instruments available if needed to stimulate the economy and boost inflation.
The comments came after the ECB held its benchmark interest rate at a record-low 0.05%. The central bank also kept its marginal lending at 0.30% and left its deposit facility rate unchanged at -0.20%.
Meanwhile, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits increased by 12,000 to 282,000 last week. Analysts had expected initial jobless claims to rise by 5,000 to 275,000 last week.
First-time jobless claims have held below the 300,000-level for 26 consecutive weeks, which is usually associated with a firming labor market.
A separate report showed that the U.S. trade deficit narrowed 7.4% in July to $41.9 billion, as exports edged up 0.4% and imports fell 1.1%.
Market participants now looked ahead to Friday’s nonfarm payrolls report, which could help to provide clarity on the likelihood of a near-term interest rate hike.
The consensus forecast is that the data will show jobs growth of 220,000 last month, following an increase of 215,000 in July, while the unemployment rate is forecast to decline to 5.2% from 5.3%.
A strong jobs report was likely to add to indications that the Federal Reserve will raise rates in September, while a weak number could push back expectations to December.
Recent turmoil in global financial markets has raised doubts over whether the Fed will hold off hiking interest rates from record lows at its upcoming policy meeting on September 17.
The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.