Crude oil futures rebound with Ukraine-Russia ceasefire in focus

A A A - - 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 the conflict".

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 weighed.

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 barrel.

A day earlier, U.S. oil prices 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 August 29.

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 currencies. offers an extensive set of professional tools for the financial markets.
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