Commodities: Oil prices rebound ahead of ECB as BHP cuts rig numbers

Oil prices were rebounding slightly on Wednesday as European Central Bank (ECB) speculation flooded the markets.

Brent for March delivery was up $1.04 at $49.03 ahead of the ECB meeting on Thursday, at which policymakers are expected to implement full-blown quantitative easing (QE).

Meanwhile, comments BHP Billiton, the biggest overseas investors in US shale, provided upwards pressure on oil after it said it was reducing the number of its US onshore rigs by 40% by the summer in response to the collapse in prices.

Spreadex analyst Connor Campbell said: “Gold, on the other hand, has become embroiled in the Eurozone-mess, rising and falling on the conflicting reports coming out about the state of ECB QE.

“A plunge by the euro tomorrow could see gold sure up its psychologically significant $1,300 per ounce level; a disappointed reaction by investors may see the commodity shed its recent gains.”

On COMEX, gold futures were advancing 0.20% to $1,291.10, rallying ahead of potential qualitative easing from the ECB.”

IG analyst Chris Beauchamp said: “In a world of negative rates, gold’s 0% yield has become much more attractive.

“However the gains were wiped out as the ECB headlines crossed the wires, suggesting that people were taking the opportunity to book gains after a near 10% move higher for the metal so far during 2015.”