Brent crude oil strengthened on Friday morning after US jobs data and central bank policy meetings were all reported in the commodity's favor. Brent steadied at $102.71 at 7:45 GMT on Friday morning.
Both Europe and the US' central banks made policy decisions that strengthened crude prices this week as both banks attempted to kick start their respective economies. On Wednesday, the US Federal Reserve renewed its promise to continue buying bonds in an aggressive stimulus program. The decision helped mitigate some of Brent's weekly losses as investors turned their attention to Europe.
The European Central Bank lowered its interest rate to 0.5 percent on Thursday which drove a crude rally as investors took the decision as a sign the region was moving away from its austerity centered recovery plan and focusing on growth.
The decision was announced alongside a promise to continue providing as much liquidity as needed to eurozone banks until at least July 2014. Bank President Mario Draghi also claimed the central bank was focused on finding ways to increase lending to small companies, especially those in bailout countries where gaining credit has been difficult.
The promise of continued support has been optimistically touted as a way to encourage banks to lend to small and medium sized businesses, which in turn could lead to expanding enterprises and lower unemployment.
Also propping up the commodity was positive weekly jobless data from the US which boosted confidence in the nation. According to CNBC, jobless claims in the US fell to a five year low, which indicated that the world's largest economy was getting its job market back on track.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.