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A
signal from European Central Bank President Mario Draghi on
Thursday that new euro zone initiatives could be unveiled as
soon as December to stoke the economy added further tailwind.
Benchmark Brent crude oil rose 47 cents to $48.55 a barrel by
0730 ET, but was still on course for a weekly decline of more
than 3.5 percent on ongoing supply concerns.
U.S. crude for December was down 30 cents at $45.68 a barrel, on
course for a 3 percent weekly decline.
The People's Bank of China (PBOC) cut its benchmark one-year
lending rate for the sixth time since November by 25 basis
points to 4.35 percent in its latest effort to boost the
country's economy whose rapid growth stalled.
"The rate cut does give some support to demand expectations so
oil's gone a bit higher and it's a little bit positive for the
moment," said Hans van Cleef, senior energy economist at ABN
Amro in Amsterdam.
The ECB's stimulus plans offered further support, van Cleef
said.
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 consumption to go up," Barratt added.
European stock markets joined a global share surge that buoyed
overall sentiment. [MKTS/GLOB]
Adding further support to an outlook shaken in recent months by
weaker growth in emerging economies including China, Japanese
manufacturing expanded in October at what could be its fastest
pace in 19 months, according to Markit/Nikkei Japan Flash
Manufacturing PMI data.
The positive tone offset persistent concerns over a glut in
global crude oil and refined product supplies which have
battered the energy market for over a year.
U.S. oil inventories climbed by a larger-than-expected 8 million
barrels to 476.6 million last week, helping to fuel concern over
global oversupply. EIA/S
Investors also awaited rig data on Friday for guidance on how
U.S. oil production has responded to recent price falls.
(Additional reporting by Simon Falush and Christopher Johnson in
London and Keith Wallis in Singapore; Editing by Dale Hudson and
Jason Neely)
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