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Oil turns negative after Draghi announces ECB QE
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Loading...Benchmark oil contracts turned negative on Thursday after European Central Bank President Mario Draghi announced the bank would begin buying $60 billion in securities a month in March as part of a quantitative easing program.
Earlier, Brent crude oil crept above $50 a barrel ahead of the expected ECB decision. The move could push the dollar to new highs and put downward pressure on commodities.
Brent crude futures traded at $48.80 a barrel shortly before 10 a.m. EDT, down 23 cents and off a session peak of $50.45. U.S. crude was down 43 cents at $47.35, having reached a high of $49.09 earlier in the session.
CMC Markets analyst Michael Hewson said ahead of the ECB announcement that a so-called "quantitative easing" policy, printing money to buy sovereign bonds, was unlikely to affect oil prices in the long term.
Analysts expect U.S. crude stocks to have increased by roughly 2.6 million barrels in the last week, further depressing oil prices. Data from the U.S. Department of Energy's Energy Information Administration will be released at 11 a.m. EDT (1600 GMT) Thursday.
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