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Crude oil rises ahead of ECB meeting, U.S. supply data

Published 09/06/2012, 03:38 AM
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Investing.com - Crude oil futures were higher during European morning hours on Thursday, as investors looked ahead to the European Central Bank’s policy meeting later in the day.

Oil traders were also focusing on closely-watched weekly supply data on U.S. stockpiles of crude and refined products from the U.S. Energy Information Administration later in the day.

On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD96.12 a barrel during European morning trade, gaining 0.8%.

Earlier in the day, prices rose by as much as 0.95% to trade at a session high of USD96.25 a barrel.

Markets were eyeing the ECB’s monetary policy meeting later Thursday, at which President Mario Draghi was expected to announce details of measures to help stabilize the region’s sovereign debt markets.

Bloomberg reported on Wednesday that the ECB is planning "unlimited, sterilized" bond buying plan, without setting bond yield targets. The plan is reported to be focused on government bonds with maturities of up to three years.

Analysts warned that sentiment was set to remain vulnerable however, amid fears that the central bank may disappoint.

Traders were also focusing on a slew of data from the U.S., which could influence the Fed’s decision to introduce fresh stimulus measures at its next policy meeting starting on September 12.
   
Later in the day, the U.S. was to release a report on ADP non-farm employment payrolls, followed by weekly government data on unemployment claims. The country was also to release a report by the Institute for Supply Management on service sector activity.

On Friday, the country will publish a closely-watched report on non-farm payrolls, with a weaker-than-expected number likely to bolster expectations of more quantitative easing by the Fed.

Meanwhile, oil traders were looking ahead to weekly data from the U.S. government on oil supplies later in the day to gauge the strength of demand from the world’s largest oil consumer.

The report was expected to show that U.S. crude oil stockpiles declined by 5.3 million barrels last week, as Hurricane Isaac shut offshore platforms in the Gulf of Mexico.

After markets closed Wednesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories fell by 7.2 million barrels last week to hit the lowest level in five months.

The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery rose 0.45% to trade at USD113.61 a barrel, with the spread between the Brent and crude contracts standing at USD17.49 a barrel.

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