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Crude gains as BoJ kicks off massive stimulus program

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Investing.com - Oil prices rose on Monday after the Bank of Japan kicked off its massive monetary easing program as part of a broader policy to prioritize economic growth over keeping inflation in a tight range.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded up 0.37% at USD93.04 a barrel on Monday, off from a session high of USD93.75 and up from an earlier session low of USD92.48.

The Bank of Japan conducted its first government bond purchasing operation early Monday when it bought JPY1.2 trillion in Japanese government debt maturing in five years or more.

The move forms part of the Bank of Japan's plan to double its asset purchase program over the next two years and extend the maturities of the bonds it purchases as part of a strategy to hit a 2% inflation target.

Investors in energy markets applauded the move, though U.S. jobs data released late last week capped the growth-sensitive commodity's gains.

The U.S. Bureau of Labor Statistics reported Friday that the economy added 88,000 nonfarm payrolls in March, way below expectations for a gain of 200,000 and below the 268,000 jobs added in February.

The private sector added 95,000 jobs last month, after an increase of 254,000 in February, missing expectations for a 209,000 rise.

The report also showed that the U.S. unemployment rate ticked down to 7.6% in March from 7.7% the previous month, as more Americans left the labor force.

Analysts were expecting the headline unemployment rate to remain unchanged last month.

Elsewhere on the ICE Futures Exchange, Brent oil futures for May delivery were down 0.09% at USD104.03 a barrel, up USD10.99 from its U.S. counterpart.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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