On the New York Mercantile Exchange, light, sweet crude futures for delivery in September traded at USD87.81 a barrel during U.S. morning trade, climbing 0.79%.
Speaking at the ECB’s post-policy meeting press conference, ECB President Mario Draghi said the bank may undertake bond purchases in order to bring down the "exceptionally high" borrowing costs of stressed euro zone members, but provided no explicit details on how and when these activities may be carried out.
Draghi also said that any such action by the ECB was conditional on euro zone governments experiencing difficulty on bond markets activating the bloc’s bailout funds to purchase government bonds and accepting strict conditions and supervision.
The statement disappointed market expectations for bold steps to counter the debt crisis, which have been building since Draghi pledged last week to do whatever is necessary to preserve the euro.
The ECB conference came after the Federal Reserve on Wednesday refrained from implementing fresh easing measures following its monthly policy meeting, but the U.S. central bank said economic growth had ‘decelerated’ in the first half of the year and reiterated that it stood ready to provide additional stimulus as necessary.
Elsewhere Wednesday, the U.S. Congress unanimously approved a new package of sanctions against Iran over its disputed nuclear program, which aim to penalize banks as well as insurance and shipping companies helping Tehran sell oil.
Meanwhile, markets were eyeing Ernesto, the fifth named weather system of the Atlantic season, as it developed east of the Lesser Antilles, prompting storm warnings for islands including St. Lucia, Martinique and Guadeloupe. It was still too early to say on Friday whether the storm’s track will lead it into the Gulf of Mexico.
The Gulf is home to 29% of U.S. oil production and 40% of refining capacity, according to the U.S. Energy Department. In June, Tropical Storm Debby’s threat to the Gulf pushed New York natural gas futures to a one-month high as about 35% of the region’s output was shut.
On the London based ICE Futures Exchange, Brent oil futures for September delivery rose 0.68% to trade at USD106.63 a barrel, with the spread between the Brent and crude contracts standing at USD18.82.
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