Oil prices rise ahead of ECB meeting

PanARMENIAN.Net - Oil prices rose Thursday, Sept 6. ahead of a meeting of European central bankers who are expected to announce a plan to help financially strapped countries, AP reports.

The European Central Bank is expected to announce a bond-buying program to reduce high borrowing costs in Spain and Italy. That could lower their chances of needing an emergency bailout, ease concerns about their economies and translate into growth and more demand for energy.

Benchmark crude for October delivery was up 50 cents to $95.86 a barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract rose 6 cents to end at $95.36 per barrel in New York on Wednesday. Brent crude was 52 cents higher at $113.61.

Manufacturing weakness in China and the U.S. has sparked fears of a global economic slowdown. But such concerns are being countered by pledges of action by central banks and governments to promote global economic growth.

Expectations for ECB action have been high since the bank’s president, Mario Draghi, said in July that the bank will do whatever it takes to save the euro currency.