Oil prices rose on Friday, on back of support from brighter economic data and a global stock market rally, after the European Central Bank signalled more stimulus. Benchmark Brent crude oil was 20 cents higher at $48.28 a barrel, after settling up 23 cents in the previous session. US crude for December was unchanged at $45.38 a barrel, having risen 18 cents the precious day.
The gains followed a raft of positive economic data and a statement by ECB President Mario Draghi on Thursday, that new euro zone initiatives could be unveiled as soon as December. Draghi said the ECB was "open to the full menu of monetary policy" to stoke the economy.
The euro saw its largest one-day percentage drop against the dollar in nine months on Thursday, a move that might have been expected to depress oil, which is traded internationally in the US currency. ut Hans van Cleef, senior energy economist at ABN AMRO Bank, said hopes that European economic stimulus measures would boost oil demand were supporting fuel globally.
Data from the United States on Thursday showed a strong rebound in home resales in September with new applications for unemployment benefit hovering around 42-year lows. European stock markets joined a global share surge, buoying overall sentiment.
Japanese manufacturing activity expanded in October, at what is expected to be its fastest pace in 19 months, according to Markit/Nikkei Japan Flash Manufacturing PMI data on Friday.
China's commercial crude oil stocks at the end of September rose 2.38 per cent from August, while diesel stocks saw a record 15.68 per cent drawdown and refined fuel stocks overall dropped 7.46 per cent, the official Xinhua News Agency reported on Friday without giving actual volumes.
Rising US oil inventories, which rose by a larger-than-expected 8 million barrels to 476.6 million last week, were a potential headwind to oil prices, helping to fuel concern over global oversupply.
Investors also awaited rig data on Friday for guidance on how US oil production has responded to recent price falls.
The gains followed a raft of positive economic data and a statement by ECB President Mario Draghi on Thursday, that new euro zone initiatives could be unveiled as soon as December. Draghi said the ECB was "open to the full menu of monetary policy" to stoke the economy.
The euro saw its largest one-day percentage drop against the dollar in nine months on Thursday, a move that might have been expected to depress oil, which is traded internationally in the US currency. ut Hans van Cleef, senior energy economist at ABN AMRO Bank, said hopes that European economic stimulus measures would boost oil demand were supporting fuel globally.
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"Draghi's comments are supportive," van Cleef added. "Nevertheless, with the dollar finding support, the upside for oil prices will be limited." Jonathan Barratt, chief investment officer at Ayers Alliance, said markets had decided governments would not allow economies to falter. "These expectations suggest more active economic development will force a rise consumption," Barratt added.
Data from the United States on Thursday showed a strong rebound in home resales in September with new applications for unemployment benefit hovering around 42-year lows. European stock markets joined a global share surge, buoying overall sentiment.
Japanese manufacturing activity expanded in October, at what is expected to be its fastest pace in 19 months, according to Markit/Nikkei Japan Flash Manufacturing PMI data on Friday.
China's commercial crude oil stocks at the end of September rose 2.38 per cent from August, while diesel stocks saw a record 15.68 per cent drawdown and refined fuel stocks overall dropped 7.46 per cent, the official Xinhua News Agency reported on Friday without giving actual volumes.
Rising US oil inventories, which rose by a larger-than-expected 8 million barrels to 476.6 million last week, were a potential headwind to oil prices, helping to fuel concern over global oversupply.
Investors also awaited rig data on Friday for guidance on how US oil production has responded to recent price falls.