Brent crude jumped by 36 cents to $112.07 a barrel today, after Japan promised to introduce more monetary stimulus to improve its economy, while the US and China have shown positive economic signs in recent weeks.
US crude, however, remained unaffected at $95.67, reported Reuters.
On Tuesday the Bank of Japan (BOJ) doubled its inflation target to two percent and adopted an open-ended pledge to acquire assets in an effort to promote growth.
According to analysts, Japan’s stimulus plan is likely to provide more support to base metals compared to energy, as the country is planning to build infrastructure that will drive demand for metals such as zinc and copper.
It is expected that China, the world’s second-largest oil consumer, will witness stronger demand of 460,000 barrels per day (bpd) in 2013, which will be a rise from 330,000 bpd in 2012.
Investors are keeping a watchful eye on US developments as the deadline to sign a deal on debts is approaching soon, while on Monday President Barack Obama began his second term and called for a more inclusive America.
The Algerian hostage crisis took a new turn, when the country’s Prime Minister Abdelmalek Sellal suggested that a Canadian national had organised the raid on the In Amenia gas plant, which lead to the deaths of about 38 foreign hostages.
It is, however, expected that investment in the country’s oil and gas sector may see a drop on concerns over the security costs, in the wake of the siege obscuring the impact of a hydrocarbon law designed to attract foreign companies.
Image: Bank of Japan headquarters in Tokyo, Japan. Photo courtesy of RaTT.
