Oil prices climb on upbeat economic data, ECB stimulus moves

By Keith Wallis
SINGAPORE, Oct 23 (Reuters) - Oil prices extended gains into
a second day in Asian trade on Friday, finding support from
brighter economic data and a global stock market rally after the
European Central Bank signalled its willingness to launch more
stimulus measures.
Brent LCOc1 for December delivery rose 36 cents to $48.44
a barrel at 0252 GMT after settling up 23 cents in the previous
session.
U.S. crude CLc1 for December delivery climbed 22 cents to
$45.60 a barrel, having risen 18 cents previously.
The gains followed a slew of upbeat economic data, while ECB
president Mario Draghi said new Eurozone pump priming
initiatives could be unveiled as soon as December. urn:newsml:reuters.com:*:nL8N12M20T
"It's all about the numbers," said Jonathan Barratt, chief
investment officer at Sydney's Ayers Alliance.
"The market is taking the view that governments will
not allow economies to falter. These expectations suggest more
active economic development will force consumption to go up," he
said.
Average new home prices in China rose in September for a
fifth straight month, according to Reuters calculations from
official data published on Friday. urn:newsml:reuters.com:*:nENNFAG0TI
That came as data from the United States on Thursday showed
a strong rebound in home resales in September and new
applications for unemployment benefits hovered around 42-year
lows last week. urn:newsml:reuters.com:*:nL1N12M15S
Asian stock markets, including Japan and Australia, joined a
global shares surge that buoyed overall sentiment, although a
strengthening dollar, which rose to a fresh two-month peak
against the euro, capped oil price gains.
A stronger greenback makes commodities denominated in the
dollar more expensive for holders of other currencies.
But rising U.S. oil inventories, which climbed by a larger
than expected 8 million barrels to 476.6 million last week, are
a potential headwind to oil prices, helping to fuel concern over
global oversupply. EIA/S
Investors are waiting for the latest rig data later on
Friday for guidance on a further fall in U.S. oil production,
which has dropped to below 9 million barrels per day, Phillip
Futures in a note.
"If the (downward) trend continues it shows supply is being
eaten into," Barratt said.
Markit flash manufacturing PMI data from the Eurozone and
the U.S. later on Friday could give further direction to oil
prices.