NEW YORK, Feb. 12 (UPI) -- A cease-fire in Ukraine helped offset otherwise weak economic indices Thursday, giving oil prices more than a 3.5 percent lift early in the trading day.
Multilateral negotiators in the capital of Belarus hammered out an "immediate and full" cease-fire agreement in eastern Ukraine that would enter into force during the weekend. Ongoing conflict in the region has put Western powers in a tug-of-war with Russia over Ukraine, a former Soviet republic.
The agreement came as the International Monetary Fund extended a $17.5 billion hand to a Ukrainian economy left hobbled by war.
That was enough to lift oil markets limping into the second week of February, following last week's rally that led some analysts to speculate a floor price for crude oil has been reached.
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The price for the global benchmark Brent gained more than 3 percent early in the trading session to trade near $56.50 per barrel for the March contract. Brent dipped below the $50 mark last month and was one of the indices experiencing major losses in trading earlier this week.
International security developments offset concerns about the health of the global economy. Mark Carney, the governor for the Bank of England, said low oil prices were providing a net gain to the global economy and would keep the British economy from entering a period of deflation.
Inflation was low, he added, and "will likely fall further, potentially turn negative in the spring, and be close to zero for the remainder of the year."
The European economy is experiencing negative growth, and low oil prices are hurting economies like Russia that rely on oil and gas for revenue.
In the United States, the Commerce Department said consumer spending was slow, while the Labor Department said applications for unemployment were up slightly.
The price for West Texas Intermediate, the U.S. crude oil benchmark, was up more than 4 percent from the previous close to move near $51 per barrel early in the trading day.
