By Virginia Harrison, MarketWatch
SYDNEY (MarketWatch) — Crude-oil futures inched slightly lower in a choppy electronic-trading session on Thursday, as traders eyed the outcome of the European Central Bank meeting later in the day.
Crude for September delivery CLU2 +0.27% slipped 3 cents to $88.88 a barrel on the New York Mercantile Exchange during Asian trading hours. The commodity struggled to find direction in electronic trading as investors looked ahead to a much-anticipated European Central Bank later on Thursday.
A larger-than-expected supply drop gave oil prices a boost in Wednesday’s North American session. Read more on Wednesday's oil session.
European leaders have fuelled expectations of bold action, pledging their commitment to keep the currency bloc together.
On the eve of the gathering, the mood was cautious across commodity and equity markets, amid fears the central bank may fail to meet expectations.
“Although markets have pared back their overly bullish expectations from the end of last week, a lack of action by the ECB to reduce peripheral bond yields will disappoint and lead to a sell off in risk assets...,” Credit Agricole strategist Mitul Kotecha wrote in a research note.
Virginia Harrison is a MarketWatch reporter based in Sydney.
