WTI oil futures hold gains, Brent above $51 as sentiment recovers

Investing.com - West Texas Intermediate oil held on to gains from the previous session, while Brent prices climbed above $51-per-barrel on Thursday, as investors returned to the market to close out bets on lower prices.

Sentiment recovered amid growing expectations that the European Central Bank could implement quantitative easing as soon as its next meeting on January 22.

On the New York Mercantile Exchange, crude oil for delivery in February picked up 28 cents, or 0.58%, to trade at $48.93 a barrel during European morning hours, after hitting a daily peak of $49.64.

A day earlier, WTI oil fell to $46.83, the weakest level since April 2009, before turning higher to end at $48.65, up 72 cents, or 1.5%, after data showed that oil supplies in the U.S. fell unexpectedly last week.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories decreased by 3.1 million barrels in the week ended January 2, compared to expectations for an increase of 0.9 million barrels.

Appetite for riskier assets improved after data showed that the U.S. private sector added a larger-then-forecast 241,000 jobs in December.

The upbeat data boosted the outlook for the U.S. recovery and raised expectations for a strong reading of the government nonfarm payrolls due on Friday.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for February delivery hit a session high of $51.90 a barrel, before trading at $51.37, up 21 cents, or 0.42%.

On Wednesday, London-traded Brent prices tumbled to $49.66, a level not seen since May 2009, before recovering to settle at $51.15, up 5 cents, or 0.1%.

London-traded Brent prices lost nearly 48% in 2014, while WTI futures dropped almost 46% after the Organization of Petroleum Exporting Countries decided to maintain its output target at 30 million barrels a day.

The decision disappointed hopes the oil cartel would lower production to support the market, as a surplus develops amid the shale boom in the U.S., which is pumping at the fastest pace in more than 30 years.