US crude trades over $102/bbl after Fed injection

18 September 2008 14:00  [Source: ICIS news]

LONDON (ICIS news)--NYMEX light sweet crude futures gained more than $5/bbl on Thursday to take the front-month October contract above $102/bbl on reports that the US Federal Reserve provided $50bn to the money markets.

By 12:30 GMT, October NYMEX crude had hit a high of $102.24/bbl, a gain of $5.08/bbl from the Wednesday close of $97.16/bbl, before easing back to around $101.20/bbl.

At the same time, November Brent crude on ICE Futures was trading around $98.85/bbl, having hit a high of $99.69/bbl, a gain of $4.85/bbl from the previous close.

This move from the Federal Reserve restored confidence in the global economy which was the main factor driving prices down after the recent troubles in the financial services industry.

During the morning session prices were also moving up due to the dollar losing ground. This current upward trend followed Wednesday’s $6/bbl increase, the largest one-day increase in three months.

Oil prices have also been supported by the continued shutdown of production facilities and refineries following the passage of Hurricane Ike.

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By: Giovanni Coiro
+44 20 8652 3214

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