LONDON (Reuters) - Brent crude oil
dipped towards $48 a barrel on Thursday ahead of an expected decision
by the European Central Bank (ECB) to start buying bonds, a move which
could push the dollar to new highs and put downward pressure on
commodities.
The ECB's Executive Board has proposed a program that would allow it to buy 50 billion euros ($58 billion) of bonds a month starting in March, a euro zone source said. The expected stimulus program has pressured the euro and sent the dollar, seen as a safe haven, soaring.
A strong dollar, buoyed by an expected U.S. interest rate hike and an American economy that is growing while Europe and Asia slow, dents demand for dollar-priced commodities by making them expensive for holders of other currencies.
Oil prices have already more than halved since June last year due to oversupply and a fall in global demand.
Brent crude futures traded at $48.75 a barrel by 0910 GMT, down 28 cents. U.S. crude was down 50 cents at $47.28.
Read more Click Here / www.trade4x.net
The ECB's Executive Board has proposed a program that would allow it to buy 50 billion euros ($58 billion) of bonds a month starting in March, a euro zone source said. The expected stimulus program has pressured the euro and sent the dollar, seen as a safe haven, soaring.
A strong dollar, buoyed by an expected U.S. interest rate hike and an American economy that is growing while Europe and Asia slow, dents demand for dollar-priced commodities by making them expensive for holders of other currencies.
Oil prices have already more than halved since June last year due to oversupply and a fall in global demand.
Brent crude futures traded at $48.75 a barrel by 0910 GMT, down 28 cents. U.S. crude was down 50 cents at $47.28.
Read more Click Here / www.trade4x.net
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