AFP, Singapore :
Oil prices rose in Asia Friday after the European Central Bank (ECB) signalled further stimulus measures to help the struggling eurozone economy, but analysts expect oversupply woes to limit gains.
Remarks by ECB chief Mario Draghi that possible additional monetary stimulus measures could come as soon as March lifted global markets and brought a measure of joy after weeks of painful losses.
At around 0320 GMT, US benchmark West Texas Intermediate (WTI) for March delivery was up five cents at $29.58 barrel. Brent rose 13 cents to $29.38.
On Thursday, Brent surged almost five percent and WTI jumped more than four percent after Draghi said there were “no limits to how far we are willing to deploy our policy instruments” in a signal that more stimulus could be coming.
The black gold was also given a boost by a report showing US stockpiles did not rise last week as much as expected.
Earlier in the week, WTI sank to as low as $26.19 on Wednesday before closing at $26.55, the lowest level since May 2003. Brent also tumbled below $28, to its weakest point in more than 12 years.
Crude prices have been hammered the past three weeks, falling about 75 percent in 18 months on a supply glut, weak demand, overproduction and a slowing global economy.
Adding to downside pressure on the commodity is the return of Iranian crude into the market after the lifting of Western sanctions, offsetting any output cuts from other countries.
Analysts said however it was still unclear if the rebound will be sustained based on the ECB moves alone as the world crude oil market remains oversupplied.
However, Bernard Aw, market strategist at IG Markets in Singapore, said: “If market participants piled into oil because of ECB stimulus hopes, then the upmove will not be sustainable given that the supply glut will re-exert itself sooner rather than later.”
Oil prices rose in Asia Friday after the European Central Bank (ECB) signalled further stimulus measures to help the struggling eurozone economy, but analysts expect oversupply woes to limit gains.
Remarks by ECB chief Mario Draghi that possible additional monetary stimulus measures could come as soon as March lifted global markets and brought a measure of joy after weeks of painful losses.
At around 0320 GMT, US benchmark West Texas Intermediate (WTI) for March delivery was up five cents at $29.58 barrel. Brent rose 13 cents to $29.38.
On Thursday, Brent surged almost five percent and WTI jumped more than four percent after Draghi said there were “no limits to how far we are willing to deploy our policy instruments” in a signal that more stimulus could be coming.
The black gold was also given a boost by a report showing US stockpiles did not rise last week as much as expected.
Earlier in the week, WTI sank to as low as $26.19 on Wednesday before closing at $26.55, the lowest level since May 2003. Brent also tumbled below $28, to its weakest point in more than 12 years.
Crude prices have been hammered the past three weeks, falling about 75 percent in 18 months on a supply glut, weak demand, overproduction and a slowing global economy.
Adding to downside pressure on the commodity is the return of Iranian crude into the market after the lifting of Western sanctions, offsetting any output cuts from other countries.
Analysts said however it was still unclear if the rebound will be sustained based on the ECB moves alone as the world crude oil market remains oversupplied.
However, Bernard Aw, market strategist at IG Markets in Singapore, said: “If market participants piled into oil because of ECB stimulus hopes, then the upmove will not be sustainable given that the supply glut will re-exert itself sooner rather than later.”
