REUTERS
Crude-oil prices extended gains in early Asia trade Monday as the market continued to react to signals by the European Central Bank (ECB) that it would undertake more stimulus measures to lift the regional economy, according to The Wall Street Journal.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $32.22 a barrel at 0238 GMT, up $0.03 in the Globex electronic session. March Brent crude on London's ICE Futures exchange rose $0.02 to $32.20 a barrel, according to the report.
As reported earlier, oil prices dropped below $27 a barrel last week, but bounced back to above $32 after the ECB hinted that more monetary easing may be rolled out as early as March. Some traders also speculated that Japan's central bank might increase its asset-purchase program at its end-January meeting, according to The Wall Street Journal.
Prices got an additional lift after industry group Baker Hughes reported the number of U.S. active oil rigs dropped by five to 510 last week.
The recent frigid weather in North American and Europe also buoyed prices on expectations for higher demand for heating fuels.
But analysts say the positive trend will likely end soon because the problem of a growing global glut amid slowing demand remains unchanged.
"Oil rigs in the U.S. have become more efficient so fewer numbers of active oil rigs do not necessarily translate to lower production," said an Australia-based energy analyst, adding that the physical oil market is still "grossly oversupplied," according to the publication.
It is noted traders will be taking cues from the U.S. Federal Reserve meeting on January 26-27. The market largely expects the U.S. government to keep short-term interest rates steady. The U.S. Energy Department is also expected to release weekly U.S. crude inventory data Wednesday.