Brent Crude Oil Futures Rise As European Oil Demand Seen Higher
NEW YORK, June 5 (Reuters) - Brent crude oil futures rose and U.S. crude oil pared losses on Thursday in choppy trading as the euro and dollar reacted to the European Central Bank's (ECB) interest rate cut and investors anticipated growing oil demand in Europe.
The dollar initially strengthened against the euro after the ECB cut interest rates to record lows and announced negative interest rates on overnight deposits.
"I think it took the markets a while to process what the implications are from these moves from the ECB, but the press conference by [ECB President] Mario Draghi propped up the view that these moves will make the economy more robust, and that speaks to what energy demand will be," said John Kilduff, a partner at Again Capital LLC in new York.
"It was a good economic data week for the continent," he added.
Brent bounced off a three-week low and U.S. crude from a two-week low hit immediately after the ECB announcement.
Crude, priced in dollars, comes under pressure when the greenback rises as it becomes less affordable to holders of other currencies.
U.S. crude lost 16 cents to settle at $102.48, It recovered after dropping to $101.60, its lowest since May 16.
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