Forexpros – Crude oil futures edged higher on Thursday, climbing back above the key psychological level of USD100-a-barrel as markets awaiting the outcome of the European Central Bank’s policy meeting later in the day and hoped for positive results at a critical European Union summit.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at USD100.92 a barrel during European morning trade, gaining 0.43%.
It earlier rose by as much as 0.6% to trade at a daily high of USD101.08 a barrel.
The ECB was expected to cut its key interest rate by 0.25% at its policy meeting later in the day, a move which would take it back to a record-low 1%.
Investors will also be looking for any hints the ECB will boost its bond-buying program to support the region’s struggling periphery and help stabilize euro zone bond markets.
Meanwhile, European leaders were to begin a two-day summit in Brussels to discuss proposed changes to EU treaties which would allow for greater fiscal integration and stricter enforcement of budgetary discipline in the single currency bloc.
But expectations for a breakthrough were dampened on Wednesday, after a senior German official expressed pessimism over the outcome of the summit.
Focus on the summit has intensified since ratings agency Standard & Poor’s placed 15 euro zone nations, including AAA-rated Germany and France, on review for credit downgrades due to the region’s deepening financial crisis.
The euro zone accounted for nearly 16% of global oil consumption in 2010, according to data from British Petroleum.
Lingering fears over a potential disruption to oil exports for Iran continued to underline prices. OPEC Secretary General Abdullah El-Badri said at an industry event in Qatar earlier that he hoped the European Union would not press sanctions on Iran’s “difficult to replace” oil exports.
Earlier in the week, Iran’s Foreign Ministry warned that global oil prices would more than double to USD250 a barrel if the West seriously considered blocking Tehran’s ability to export oil.
Iran is the world’s fourth largest oil producer, pumping nearly 5% of the world’s oil in 2011 and the second biggest exporter among the Organization of the Petroleum Exporting Countries.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for January delivery rose 0.65% to trade at USD110.25 a barrel, with the spread between the Brent and crude contracts standing at USD9.33 a barrel.
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