Oil prices rose on Thursday but pared early gains as investors tried to assess how effective massive stimulus by central banks will be in shoring up the global economy as the shock from the coronavirus pandemic deepens.

Bucking panic selling in other financial markets, Brent crude (LCOc1) was up 37 cents, or 1.1% at $25.25 a barrel by 03:55 GMT, having earlier risen to $27.19. The global benchmark slumped 13% on Wednesday in a third day of relentless selling.

U.S. oil (CLc1) gained $1.44, or 7.1%, to $21.81 after surging nearly 20% earlier. The U.S. benchmark dropped nearly 25% in the previous session.

Among the latest moves by a major central bank to try to mitigate the spiraling economic and financial fallout from the epidemic, the European Central Bank kicked off a 750 billion euro ($820 billion) emergency bond purchase scheme after an unscheduled meeting on Wednesday.

Source : Reuters