Crude oil up

Posted By: Religare
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Crude oil up
On the New York mercantile exchange, oil prices showed a spike (31-month intraday high) after the US Federal Reserve provided an assurance that it would encourage economic growth in the country (US).This in turn led to an assumption that the fuel demand will increase in the country.

The Federal Reserve Chairman Ben S. Bernanke indicatedthat they will preservethe record monetary incentives. Federal Reserve did not make any changes to key rates (0.25 per cent) and indicated that stimulus will be preserved until the American economy is prepared for monetary tightening. It added that its current $600 billion program would be allowed to continuetill June.

A simplistic monetary policy makes the US currency weak which in turn helps in supporting oil prices. The value of crude for June delivery was reported at $113.70 per barrel, up by 94 cent on the New York mercantile exchange. While on the ICE futures exchange in London, Brent crude for May contract was upto $125.55 a barrel. (12:06 P.M IST)

Read more about: oil, federal reserve, ben bernanke
Story first published: Friday, April 29, 2011, 9:30 [IST]
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