Oil prices rose today after the Bank of Japan announced plans to initiate asset purchases, in a bid to ease its monetary policy in the face of a slowing global economy.

The announcement aided oil markets to erase earlier losses, which were put down due to demand concerns that Saudi Arabia was pumping around ten million barrels each day (bpd) to keep prices at around $100.

The Bank of Japan expanded its asset buying and loan programme by JYP10 trillion ($127bn) to JPY80 trillion ($1 trillion), reports Reuters.

The move is similar to bond-buying strategies announced earlier by the US Federal Reserve and the European Central Bank.

Brent November crude gained 55 cents to $112.58 a barrel, while US October crude was up 62 cents at $95.91 a barrel.

Investors are now awaiting China’s manufacturing activity report for September, which is scheduled to be released this week.

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Image: The Bank of Japan. Photo courtesy of: Fg2.