Forexpros – Crude oil futures were higher on Monday, as investor confidence was boosted by hopes for fresh progress to stem the debt crisis in the euro zone, following reports that the European Central Bank may set limits on the yields of euro zone government bonds.
On the New York Mercantile Exchange, light sweet crude futures for delivery in September traded at USD96.14 a barrel during European morning trade, rising 0.13%.
On Sunday, German magazine Der Spiegel reported that the ECB may set an interest rate threshold on purchases of euro-area sovereign debt at its next policy meeting in September, beyond which its bond buying program would be activated.
The ECB subsequently declined to comment on the report.
Meanwhile, investors were looking ahead to a series of euro zone meetings later in the week to discuss measures to ease the debt crisis.
Luxemburg Prime Minister Jean-Claude Juncker, who also heads the group of euro zone finance ministers, was to hold talks with Greek Prime Minister Antonis Samaras on Wednesday, to discuss a two-year extension of the country’s economic reform program.
Investors were looking ahead to the minutes of the Federal Reserve’s August policy meeting later in the week, amid speculation over how close the U.S. central bank may be to implementing another round of stimulus measures.
Data on Friday showed that U.S. consumer sentiment rose to its highest level in three months in August, while the Conference Board reported that its index of leading U.S. indicators rose more-than-expected in July.
The data came after better-than-expected U.S. retail sales and industrial production data early last week indicated that the economy may be stabilizing and tempered expectations for another round of quantitative easing by the Fed.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Renewed fears over escalating violence in Syria and lingering tensions between Iran and the West have also been supporting prices in recent sessions.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery added 0.57% to trade at USD114.36 a barrel, with the spread between the Brent and crude contracts standing at USD18.22 a barrel.
Brent prices have been well-supported in recent weeks, rallying nearly 22% from the lows touched in June, amid growing concerns over tightening supplies from the North Sea region and following the launch of Western-led sanctions targeting Iranian oil exports on July 1.
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