Oil rises a third day on Draghi pledge, U.S. data

Thu Jul 26, 2012 3:02pm EDT
 
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By Gene Ramos

NEW YORK (Reuters) - Oil futures rose for a third straight day on Thursday after a pledge by the European Central Bank to protect the euro zone eased some worries about the region's debt crisis.

A drop in U.S. jobless-benefit claims for last week also supported crude's advance and with the ECB comments overshadowed worries about slowing global growth and the euro zone's troubles.

ECB President Mario Draghi, at a conference in London, pledged to do whatever it takes to preserve the euro zone. He also said tackling high sovereign borrowing costs comes within the central bank's mandate.

The euro rallied to a two-week high against the dollar on Draghi's comments, encouraging investors to buy dollar-denominated commodities such as oil and copper. <USD/>

"The comments by Draghi are likely to bring that confidence back," said Eugen Weinberg, head of commodities research at Commerzbank.

In London, September Brent crude was up 83 cents at $105.21 a barrel by 2:40 p.m. EDT (1840 GMT), after hitting a session high of $106.18.

U.S. September crude settled at $89.39, rising 42 cents, after having gained earlier to a session high of $90.47.

ECB DETAILS SOUGHT, U.S. GDP AWAITED   Continued...