Oil prices steadied today, shrugging off a shaky start which saw it fall back towards 12-year lows touched earlier this week.
Brent crude, the global benchmark, increased 1.22 per cent to $28.22 per barrel. Meanwhile, West Texas Intermediate crude, the US benchmark, rose 0.95 per cent to $28.54.
But the black stuff is still down by more than 25 per cent since the start this year, on fears that the supply glut is being worsened by a slowdown in the global economy, led by China.
This afternoon, European central bank governor Mario Draghi said that the steep fall in oil prices is weighing on inflation in the single currency area. Consequently, the central bank would review its current monetary policy measures at its March meeting.
"In this environment, euro area inflation dynamics also continue to be weaker than expected," Draghi said.
"It will therefore be necessary to review and possible reconsider our monetary policy stance at our next meeting in early March when the new staff macroeconomic projections become available."