Oil Prices Touch USD100/Barel Thanks to the Fed
Crude oil prices rose again due to the central bank’s plan of the United States (U.S.) or U.S. Federal Reserve (Fed) to maintain its interest rate until the end of 2014.
After meeting to discuss the policy, which took place over two days, the Fed declared the U.S. economy is sufficiently developed, despite the global economic slowdown, the U.S. unemployment rate is still high and the economy faces significant downside risks.
“This bodes well for the U.S. dollar to strengthen, and higher commodity prices as the Fed will continue to restrain inflation as part of efforts to revive the U.S. economy,” said Again Capital LLC, John Kilduff, in New York, as reported by Reuters , Thursday (26/01/2012).
“We saw some policymakers in the Fed, choose to see the first increase in interest rates this year, with several others looked at the increase in 2016. In terms that might be a long-term investors may be detained, on accommodation policies of the Fed,” said PFGBest Research analyst Phil Flynn in Chicago.
The result, U.S. crude oil futures for light sweet crude for February delivery traded at USD99, 40 per barrel, up 45 cents, after rising to session highs USD100, 40 per barrel, and the lowest level of USD97, 53 per barrel.
In London, ICE Brent crude for March delivery traded at USD109, 81 per barrel, down 22 cents, after hitting a session high USD110, 89 per barrel. However, in electronic trading on the New York Mercantile Exchange (NYMEX), Brent managed to rebound 47 cents and is in the USD110, 50 per barrel, while U.S. crude rose USD93 cents to USD99, 87 per barrel.
Thus, the gap between the light sweet Brent narrowed to USD10, 41 per barrel, after earlier being at USD11, 08 per barrel. Brent trading volume surged 53 percent on average trading at 30 days, and the volume of U.S. crude oil rose 14 percent against an average of 30 days.
No related posts.
No comments yet.
Leave a comment
Categories
Archives
Tags
Related Posts (YARPP)
No related posts.