Forexpros – Crude oil futures edged higher on Thursday, after the Federal Reserve refrained from any new easing measures on Wednesday, as investors looked ahead to the outcome of the European Central Bank meeting later in the day.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in September traded at USD88.98 a barrel during U.S. morning trade, inching up 0.08%.
The Fed held off implementing fresh easing measures at Wednesday’s policy meeting, but the central bank said economic growth had slowed in the first half of the year and reiterated that it stood ready to provide additional stimulus as necessary.
Trade remained subdued ahead of the upcoming ECB meeting, amid lingering expectations for fresh steps to stem the debt crisis in the euro zone.
Expectations that the ECB may resume its bond buying program, to help lower Spanish and Italian borrowing costs, have been building since EBC President Mario Draghi pledged last week to do whatever it takes to preserve the euro.
In July, the ECB cut its benchmark interest rate to a record low 0.75%, in order to ease pressure on the bloc’s economy.
Oil remained supported following a U.S. Energy Information Administration report showing that oil inventories decreased by 6.5 million barrels last week, far more than forecasts for a decline of 0.7 million barrels and the biggest weekly drawdown since December.
On 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.
On the London based ICE Futures Exchange, Brent oil futures for September delivery were up 0.48% to trade at USD106.44 a barrel, with the spread between the Brent and crude contracts standing at USD17.46.
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