Investing.com - Crude oil futures rose to the highest level in a week during European morning hours on Tuesday, as hopes for fresh action by the European Central Bank supported market sentiment, ahead of the central bank’s policy meeting later in the week.
Mounting speculation the Federal Reserve was moving closer to stimulate growth in the U.S. economy further supported gains.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD97.00 a barrel during European morning trade, gaining 0.55%.
Earlier in the day, prices rose by as much as 0.9% to trade at a session high of USD97.34 a barrel, which was the strongest level since August 27.
Market sentiment improved after ECB President Mario Draghi indicated on Monday that he would be comfortable buying bonds with maturities of up to about three years, saying that it would not constitute state financing.
At its policy meeting on Thursday, the ECB is expected to announce the details of a long awaited debt-buying program designed to help ease funding pressures for indebted euro zone countries.
Sentiment remained upbeat amid growing speculation the Federal Reserve was moving closer to stimulate growth in the U.S. economy, following a speech by Fed Chairman Ben Bernanke last Friday.
Speaking at the Fed’s annual symposium in Jackson Hole, Wyoming, Bernanke said the Fed would act as needed to strengthen the U.S. economic recovery, but stopped short of indicating that a fresh round of stimulus is imminent.
Oil traders were looking ahead to the U.S. Institute for Supply Management’s closely watched report on manufacturing activity later in the day, as well as Friday’s crucial non-farm payrolls data.
The ISM, along with the jobs data, is key to gauging the probability of further easing by the U.S. central bank at its next policy meeting beginning September 12.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Gains were limited amid lingering concerns over the outlook for global growth, after downbeat manufacturing data released Monday shed light on the gloomy state of the global economy.
Manufacturing activity in China fell to the lowest level since March 2009 last month, as new orders slumped in the face of weakening global demand.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Meanwhile, in the euro zone, revised date showed that the region’s manufacturing sector contracted for the 13th month in a row in August.
Despite the gloomy global outlook, oil markets have been bullish lately, with New York-traded crude prices up approximately 20% since touching a low of USD77.27 a barrel on June 28.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery eased up 0.1% to trade at USD115.86 a barrel, with the spread between the Brent and crude contracts standing at USD18.86 a barrel.
Brent prices have been well-supported in recent weeks, rallying nearly 23% from the lows touched in June, amid growing concerns over tightening supplies from the North Sea region and following the launch of Western-led sanctions targeting Iranian oil exports on July 1.
Mounting speculation the Federal Reserve was moving closer to stimulate growth in the U.S. economy further supported gains.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD97.00 a barrel during European morning trade, gaining 0.55%.
Earlier in the day, prices rose by as much as 0.9% to trade at a session high of USD97.34 a barrel, which was the strongest level since August 27.
Market sentiment improved after ECB President Mario Draghi indicated on Monday that he would be comfortable buying bonds with maturities of up to about three years, saying that it would not constitute state financing.
At its policy meeting on Thursday, the ECB is expected to announce the details of a long awaited debt-buying program designed to help ease funding pressures for indebted euro zone countries.
Sentiment remained upbeat amid growing speculation the Federal Reserve was moving closer to stimulate growth in the U.S. economy, following a speech by Fed Chairman Ben Bernanke last Friday.
Speaking at the Fed’s annual symposium in Jackson Hole, Wyoming, Bernanke said the Fed would act as needed to strengthen the U.S. economic recovery, but stopped short of indicating that a fresh round of stimulus is imminent.
Oil traders were looking ahead to the U.S. Institute for Supply Management’s closely watched report on manufacturing activity later in the day, as well as Friday’s crucial non-farm payrolls data.
The ISM, along with the jobs data, is key to gauging the probability of further easing by the U.S. central bank at its next policy meeting beginning September 12.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Gains were limited amid lingering concerns over the outlook for global growth, after downbeat manufacturing data released Monday shed light on the gloomy state of the global economy.
Manufacturing activity in China fell to the lowest level since March 2009 last month, as new orders slumped in the face of weakening global demand.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Meanwhile, in the euro zone, revised date showed that the region’s manufacturing sector contracted for the 13th month in a row in August.
Despite the gloomy global outlook, oil markets have been bullish lately, with New York-traded crude prices up approximately 20% since touching a low of USD77.27 a barrel on June 28.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery eased up 0.1% to trade at USD115.86 a barrel, with the spread between the Brent and crude contracts standing at USD18.86 a barrel.
Brent prices have been well-supported in recent weeks, rallying nearly 23% from the lows touched in June, amid growing concerns over tightening supplies from the North Sea region and following the launch of Western-led sanctions targeting Iranian oil exports on July 1.