Brent crude rises near 109 dollars a barrel on Wednesday as investors eyed U.S. oil inventory data and looked to euro zone policies to boost the region’s energy demand.
The European Central Bank will meet on Thursday to discuss a batch of measures aimed at stimulating the economy after inflation in the region dropped to record lows in May.
July Brent crude was at 108.89 dollars a barrel, up seven cents, after settling down one cent the previous day.
U.S. crude or West Texas Intermediate (WTI) for July delivery gained 11 cents to 102.77 dollars a barrel.
“At the moment, we’re factoring in a little contribution to global demand for oil from Europe,” said Michael McCarthy, chief strategist at CMC Markets in Sydney.
“Technically we’re in no man’s land for both Brent and West Texas, about mid-way between support and resistance, so there’s not a lot to guide us ahead of the ECB decision.”
Oil prices stabilised this week after slipping one to 1.5 per cent in the last week of May as traders booked profits on a rise in OPEC supply in three months in May.
“Increased OPEC supply across the past month may see WTI narrow its discount to Brent…,” ANZ analysts said in a note.
