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Oil futures rally amid hopes for more ECB easing

Published 22/10/2015, 14:42
© Reuters.  Crude oil futures rise amid hopes for more ECB easing
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Investing.com - Crude oil futures pushed higher 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.

Market sentiment improved after European Central Bank President Mario Draghi said the central bank will reexamine its monetary stimulus program at its policy meeting in December, hinting at the possibility for further easing measures.

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%.

Crude oil for delivery in December on the New York Mercantile Exchange tacked on 56 cents, or 1.24%, to trade at $45.76 a barrel during U.S. morning hours.

A day earlier, Nymex oil prices tumbled $1.09, or 2.35%. It earlier fell to $44.86, the lowest since October 2, after data showed that oil supplies in the U.S. rose much more than expected last week.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for December delivery inched up 45 cents, or 0.93%, to trade at $48.30 a barrel. On Wednesday, Brent futures lost 86 cents, or 1.77%, after hitting a session low of $47.50, a level not seen since October 2.

Oil experts from the Organization of the Petroleum Exporting Countries and non-member countries made no agreement to take new steps to boost prices, officials said after talks in Vienna on Wednesday. OPEC's own meeting to set policy is not until December 4.

The oil market has been volatile in recent months amid uncertainty about how quickly the global glut of crude is set to shrink. Despite this tighter outlook for North America, output remains robust in other countries.

Oil prices have lost nearly 60% since last summer as lingering concerns over a glut in world markets drove down prices.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $2.54 a barrel, compared to $2.65 by close of trade on Wednesday.

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