Brent crude extended losses, intraday decline widened to 3% to $102.99/bbl. WTI fell nearly 3% to $97.68/bbl.

Felix Feather, economist at Aberdeen Group, said in a note that more important than the ECB’s rate move was its acknowledgement that the economy is stronger than expected a few months ago and the inflation outlook is more persistent. "This updated forecast speaks volumes," he wrote. He added that despite rising energy prices and heightened geopolitical uncertainty, the euro-area economy has shown unusually strong resilience, prompting policymakers to lift growth forecasts, while inflation projections were revised up amid sustained energy costs and the risk inflation may remain above target for longer.

ECB Governing Council member Nagel said policy rates are currently at the upper end of the neutral range.