Oil Trims Biggest Drop Since June as Losses Considered Excessive
Oil advanced in New York as optimism that central bank stimulus will revive the global economy fanned speculation that crude’s biggest weekly decline in more than three months was excessive.
November futures rose as much as 1.3 percent after front- month prices slid 7.2 percent in the four days through yesterday, when the October contract expired. The Financial Times reported that Spanish and European Union officials are working on plans to trigger bond purchases by the European Central Bank. Standard & Poor’s 500 Index futures advanced 0.3 percent.
“Oil is caught between the pull of excess supply over the next few months, and the push of quantitative easing and hopes for an improvement in growth from the various stimulative programs,” said Guy Wolf, a strategist at London-based commodities broker Marex Spectron Group Ltd. “We think it is likely to remain volatile for a while longer.”