Forexpros - Crude oil futures declined on Friday, erasing gains posted earlier following encouraging comments by European Central Bank President Mario Draghi and amig ongoing tensions in the Middle East.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD91.14 a barrel during European morning trade, dropping 0.63%.
Oil prices jumped on Thursday, after ECB President Mario Draghi reiterated that the central bank was ready to start purchasing the debt of troubled euro zone states.
Speaking at the ECB’s post-policy meeting press conference earlier in the day, Draghi said the central bank was ready to undertake Outright Monetary Transactions when the prerequisites are in place.
Draghi reiterated that the central bank was acting strictly within its mandate in undertaking a bond buying program via OMT’s.
The ECB left rates on hold at a record low 0.75% earlier, in a widely anticipated decision.
Meanwhile, the minutes of the Federal Reserve's September policy meeting showed that the central bank is moving toward linking its outlook for near-zero interest rates to specific economic conditions such as a decline in the unemployment rate.
On Thursday, the Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week rose to 367,000, compared to expectations for an increase of 7,000 to 370,000.
Investors were eyeing the release of key U.S. jobs data, including the unemployment rate for September, later in the day.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Separately, oil prices also found support on Thursday after Turkey’s parliament authorized the government to order military action in Syria earlier in the day. A mortar bomb fired across the border Wednesday killed five Turks.
Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2011.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery inched up 0.08% to trade at USD112.65 a barrel, with the spread between the Brent and crude contracts standing at USD21.51 a barrel.
