LONDON: Brent crude oil steadied near $109 a barrel on Friday, buoyed by optimism that monetary stimulus in the euro zone will lift economic growth and demand for fuel.
On Thursday, the European Central Bank launched a series of measures to pump money into the sluggish euro zone economy. Investors also eyed key jobs data from the United States which matched consensus and reinforced the belief that the world's largest economy and oil consumer is on a recovery path.
"Extra liquidity could mean more money for oil," Carsten Fritsch of Commerzbank said. "A rising tide lifts all boats."
Brent edged up 4 cents to $108.83 a barrel by 1345 GMT. US crude was at $102.85 a barrel, up 37 cents.
News of the European stimulus and elevated US crude inventories widened Brent's premium to West Texas Intermediate (WTI) to settle above $6 a barrel on Thursday after hitting nearly a month's low earlier in the session. Total crude inventories remain high in the United States although new pipeline capacities have drained stocks at WTI's delivery point in Cushing, Oklahoma, to the lowest since 2008.
Oil's gains were limited, however, as market players eyed developments over Ukraine.
"The tension in Russia and Ukraine has eased somewhat post the Ukrainian elections," said Mark Keenan, head of commodities research for Asia at Societe Generale.
France hopes a gathering of world leaders in Normandy on Friday to mark the 70th anniversary of the Allied D-Day landings will bring a thaw in the Ukraine crisis.
Russian President Vladimir Putin and Ukrainian president-elect Petro Poroshenko on Friday held their first face-to-face talks on the sidelines of a D-Day event in France and discussed a possible ceasefire agreement in Ukraine, a French official said.
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