Investing.com - Crude oil futures rebounded from the previous
session's steep declines on Wednesday, after Kiev said it has
reached a deal with Russia for a ceasefire in eastern Ukraine.
On the ICE Futures Exchange in London, Brent oil for October
delivery rallied 1.3%, or $1.30, to trade at $101.65 a barrel
during U.S. morning hours.
Market sentiment improved after Ukraine's President Petro
Poroshenko said he had agreed on a "permanent ceasefire" with
eastern Ukraine with Russian President Vladimir Putin.
However, a spokesman for President Putin subsequently said he
had not agreed to a ceasefire as Russia was not party to the
conflict but added that the two leaders had "discussed how to end
London-traded Brent prices hit a 16-month low of $100.17 on
Tuesday, as plentiful global supplies and fears that sanctions
against Russia would act as a drag on the world's economy
Elsewhere, on the New York Mercantile Exchange, crude oil for
delivery in October picked up 1.15%, or $1.07, to trade at $93.95 a
A day earlier, U.S.
plunged 3.21%, or $3.08, to end at $92.88 a barrel.
Traders awaited key U.S. weekly supply data to gauge the
strength of oil demand from the world's largest consumer.
The American Petroleum Institute will release its inventories
report later in the day, while Thursday's government report could
show crude stockpiles fell by 1.1 million barrels in the week ended
The report comes out one day later than usual because of the
U.S. Labor Day holiday.
Meanwhile, investors were looking ahead to the latest U.S.
employment report, due for release on Friday, for further
indications on the strength of the recovery in the labor market, a
key factor in deciding the future path of monetary policy.
Market players are also awaiting the European Central Bank's
policy meeting on Thursday amid mounting expectations that the bank
will announce quantitative easing measures as a way to shore up
growth and stave off deflation.
The U.S. dollar index, which tracks the performance of the
greenback versus a basket of six other major currencies, hit a
13-month high of 83.07 earlier in the day, before trimming gains to
last trade at 82.93.
A stronger U.S. dollar usually weighs on oil, as it makes
dollar-priced commodities more expensive for holders of other
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