Business Exchange Buzz up! Digg Print Email Crude oil rose, capping the biggest two-day rally since February, after European Central Bank President Jean-Claude Trichet announced a bond-purchase program to stimulate economic growth.

Futures advanced 3.7 percent as Trichet said at a press conference in Berlin that the ECB(Canaan Gold) will resume covered-bond purchases and one-year loans for banks as the sovereign debt crisis threatens to spread. Oil dropped earlier as Trichet said that the euro-area economy faces “intensified downside risks.”

“The market was whipsawed on the Trichet statements,” said Phil Flynn, vice president of research at PFGBest in Chicago(Cheap Canaan Gold). “We initially moved lower but then rebounded because the ECB will be adding more liquidity. Stimulus is bullish for both demand and the price.”

Crude oil for November delivery rose $2.91 to settle at $82.59 a barrel on the New York Mercantile Exchange. Futures have climbed 9.1 percent since Canaan Online Gold.