Oil Prices Reached Over $90 with Hopes on ECB Stimulus

The oil price per barrel moved over $90 per barrel as investors stayed confident that the policymakers of Europe will provide fresh measures to solve their debt problem and preserve the euro.

The per barrel crude price in the NYMEX was higher by 43 cents to reach $90.21 in today’s early afternoon trading Europe time. In the previous day, the contract declined 35 cents to $89.78 per barrel.

In London’s ICE Futures exchange, the per barrel crude price of Brent gains 23 cents to close at $106.43.

The price of oil has increased since the past week’s promise of Mario Draghi, the chief of the European Central Bank, to “do everything it can to keep the euro currency intact.”

Similar statements from France and Germany’s leaders have resulted in a stronger confidence that something huge is coming. ECB will have a meeting in the coming days and there are high expectations of an announcement from the ECB chief that the bank plans to resume its government bond purchases to decrease the cost of borrowing for financially stricken countries in Europe, particularly Italy and Spain.

Before the recent increase in confidence, the oil price per barrel had declined from almost $106 about three months ago, when the debt crisis of Europe dragged the world economy and the slow growth of China reduced crude demand.

Moreover, investors are anticipating new information on the supply of crude and the stocks of refined commodities, such as gasoline, in the United States.

The survey conducted by Platts analysts shows that the weekly data ending on the 27th of July is anticipated to present crude inventories amounting to 1.6 million barrels and gasoline inventories of 400,000 barrels.

The oil stock report of the American Petroleum Institute will be released in the latter parts of Tuesday, while that of the Energy Information Administration of the Energy Department will be available by Wednesday.

Elsewhere in the energy markets, the price of gasoline is higher by 0.24 cents to a per gallon price of $2.8202. Heating oil declined by 0.3 cents to $2.8784 per gallon. The price of natural gas gained 0.9 cents at $3.223 per one thousand cubic feet.