BANGKOK (AP) — The price of oil continued to climb Thursday, a day after its biggest gain in five months, as recent glum data from the U.S. and Germany boosted expectations of central bank action to shore up the global economic recovery.
Benchmark oil for June delivery was up 26 cents to $91.69 at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. Oil had its biggest daily gain since December on Wednesday, as speculation grew that the European Central Bank will cut interest rates next week. The contract jumped $2.25, or 2.5 percent, to finish at $91.43.
Reports released earlier this week pointing to a decline in monthly orders for U.S. durable goods as well as a drop in the Ifo index of German business confidence reinforced expectations that the U.S. Federal Reserve and the European Central Bank would extend support to their respective economies.
"Once more, weak European data was taken with rose-coloured glasses as investors and analysts alike see the German IFO print as another reason for the ECB to cut rates," Evan Lucas of IG Markets in Melbourne said in a market commentary.
Oil prices were also lifted by a drop in U.S. crude inventories. The American Petroleum Institute said crude oil stocks had fallen by 845,000 barrels to 383.2 million barrels for the week ending April 19.
Brent crude, which is used to price oil used by many U.S. refiners, fell 5 cents to $101.68 a barrel on the ICE futures exchange in London.
In other energy futures trading on the Nymex:
— Gasoline rose 0.5 cent to $2.757 per gallon.
— Heating oil added 0.6 cent to $2.834 a gallon.
— Natural gas rose 2.1 cents to $4.187 per 1,000 cubic feet.