London: Oil prices pared gains on Thursday after the European Central Bank (ECB) said it would start buying government bonds, a move which could push the dollar to new highs and put downward pressure on commodities.
Exceeding market expectations, ECB President Mario Draghi said the bank would buy 60 billion euros ($69.34 billion) of government bonds a month until the end of September 2016 to support the flagging Eurozone economy.
Brent crude futures traded at $49.67 a barrel by 1345 GMT, up 64 cents. US crude was up 32 cents at $48.30. Earlier in the session, Brent had reached a high of $50.45, up $1.42.
Expectations for the stimulus programme have pressured the euro and sent the dollar, seen as a safe haven, soaring.
A strong dollar, buoyed by an expected US interest rate hike and an American economy that is growing while Europe and Asia slow, dents demand for dollar-priced commodities by making them expensive for holders of other currencies.
Oil prices have already more than halved since June last year due to oversupply and a fall in global demand.
