Crude oil traders’ sentiment strengthen on comments from ECB President Draghi yesterday in which the ECB will be “reexamine“ monetary policy.
Brent crude (BNO, quote) pushed nearly a percent higher on the real possibility of further quantitative easing (QE). Mr. Draghi went to assure the European countries that the central bank’s current QE program will run until 2016 and even into 2016 if necessary.
Adding to the global stability for crude oil market participants received continuing signs that the U.S. economy is strengthening albeit slowly with Thursday’s Department of Labor. The reported indicated number of U.S. workers filing for initial jobless benefits last week increased only by 3,000 compare to the expected rate of 9,000.
On the flip side crude oil gains seem to be capped in overnight trading as China announced its 6th interest rate cut since last November. Concerns continue to surround China (FXI, quote) and its ability to strengthen the Chinese economy.
Bottom Line: As we head into the weekend we find both Brent and WTI (USO, quote) flat on the morning as crude traders adjust their positions ahead of the weekend. I personally will be looking to take my short position off ahead of today’s close and look to initiate a possible long position on Monday, since both Brent and WTI are trading near the bottom of the channels created back in August.