(MENAFN- ProactiveInvestors - UK) Oil prices held steady this week thanks to support from the European Central Bank's (ECB) unlimited bond buying programme and bullish US inventories data.
Equities and commodities received a major boost from the outcome of the ECB's policy meeting on Thursday. The bank launched an unlimited and "sterile" â€" which means it is designed not to drive inflation in the euro zone higher â€" bond buying programme to bring down borrowing costs of struggling European nations such as Italy and Spain.
Bond yields fell sharply on the announcement, which boosted confidence in Europe's ability to keep its debt problems under control.
Additionally, Friday's employment data increased the likelihood of more stimulus action from the Federal Reserve.
The Department of Labor said the US economy created only 96,000 jobs in August compared with expectations of an increase of 130,000.
The unemployment rate unexpectedly declined to 8.1 percent from 8.3 percent as more people left the labour force.
The Fed is due to hold its next policy meeting later this month. It has been speculated that US policymakers could consider launching an unlimited quantitative easing programme, which could be maintained until there is a material improvement in the job market.
This week's inventories report from the Department of Energy was ahead of expectations, showing that America's crude stockpiles shed a massive 7.4 million barrels last week.
The bigger than expected drawdown was a result of the Hurricane Isaac, which swept across the Gulf of Mexico late last month.
US light, sweet crude for October delivery, currently the most actively traded contract on the New York Mercantile Exchange (NYMEX), ended the week at US$96.42/barrel.
October Brent crude closed at US$114.59/barrel on the ICE Exchange on Friday.
BP (LON:BP.) fell from 442.4 pence to 434.7 pence over the past five days of trading, while fellow supermajor Royal Dutch Shell (LON:RDSB) rose from 2,274 pence to 2,295 pence.
Tullow Oil (LON:TLW) advanced from 1,357 pence to 1,404 pence and BG Group (LON:BG.) declined from 1,288 pence to 1,269 pence.
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