US crude rises $1.30/bbl on Fed stimulus package

13 September 2012 20:57  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude for October delivery settled at $98.31/bbl on Thursday, up $1.30 versus the previous close, tracking a strong rally in the stock market and the dollar weakening in response to the US Federal Reserve’s decision to launch a stimulus programme.

Crude prices had been factoring in expectations that the Fed would respond to weak economic signals by engaging in a new round of asset purchases while keeping interest rates low.

A weak dollar would encourage investors to pour money into commodities, including oil, driving prices higher.

Before the announcement October West Texas Intermediate (WTI) had established the intra-day high at $98.58/bbl, up $1.57.

The October ICE Brent contract expired at the end of the session and topped out at $117.48/bbl and settled at $116.90/bbl, up 94 cents. November Brent settled at $115.88, up 55 cents.

By: Ignacio Sotolongo
+1 713 525 2653

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