LONDON--Crude-oil futures were higher Tuesday as investors were optimistic that central banks would take measures to prop up global economic growth.
At 1030 GMT, the October Brent contract on London's ICE futures exchange was up 57 cents, or 0.5%, at $116.35 per barrel. The front-month contract on the New York Mercantile Exchange was trading up 62 cents, or 0.6%, at $97.10 per barrel.
"There are increased hopes we're going to see some action again soon from the central banks from China, to Europe, to the U.S.," said Ole Hansen, head of commodity strategy at Denmark-based Saxo Bank.
Still the gains would likely be limited, with Brent struggling to break the $116.50 a barrel resistance level and as high gasoline prices in the U.S. could mean release of strategic oil reserves, he said.
The president of the European Central Bank, Mario Draghi, dropped clues Monday about how the bank would support struggling European countries. The comments have raised prospects that the ECB will announce more concrete measures for helping Spain and Italy at its monthly policy meeting Thursday.
If the ECB buys government bonds with a maturity of two or three years, this could boost the stability of the euro zone, leading to an environment where consumers are more likely to spend on products such as fuel.
"The headlines are still full of quantitative easing noise, where even the weak Chinese PMI is said to be positive as it increases the hope that more global QE is coming," said Petromatrix in a note Tuesday. "For today we trace the first resistance at $116.25 a barrel followed by the mid-August high of $117.03 a barrel."
At 1031 GMT, the ICE's gasoil contract for September delivery was trading $4.00 higher at $1,005.50 per metric ton, while Nymex gasoline for October delivery was up 272 points, or 0.9%, at $3.000 per gallon.
Write to Jenny Gross at jenny.gross@dowjones.com; Twitter: @jgginlondon
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