Related News
Oil rises after Fed takes steps to boost economy
Source: Agencies |
September 14, 2012, Friday
|
Online Edition
Online Edition
THE price of oil closed above US$98 a barrel for the first time in more than four months after the US Federal Reserve announced aggressive steps to boost the US economy.
The Fed said yesterday it will spend US$40 billion a month to buy mortgaged-back securities for an indefinite period. The purchases are intended to lower long-term interest rates to spur borrowing and spending. The Fed also extended a plan to keep short-term interest rates at record-low levels through mid-2015, as it attempts to boost an economy it says is too weak to reduce high unemployment.
Benchmark oil closed at US$98.31, up US$1.30. The last time it finished higher was May 4.
Expectations of action by the Fed, as well as the European Central Bank and China's government, have balanced gloomy economic news and kept oil in a narrow range the past few weeks.
Phil Flynn of the Price Futures Group said he expects the Fed decision to "reinvigorate" the stock market and boost the price of oil. The increase in oil should be gradual, however, as traders continue to focus on key economic indicators, especially jobs numbers.
"Even this massive bond buying, it's going to take some time to sink in," Flynn said.
Traders on yesterday also kept a close eye on unrest in the Middle East.
Protesters stormed the US Embassy compound in Yemen's capital yesterday, and there is violence around the US mission in Cairo. The US ambassador to Libya was killed Tuesday.
Brent crude, used to price international varieties of oil, ended up 55 cents at US$115.88 per barrel.
Meanwhile, the average price for a gallon of gas in the US rose to US$3.87, the highest since April 21 and just 7 cents below the high for the year. Refiners have run short on supplies of summer blends of gas, particularly in the Northeast. They're allowed to start selling cheaper winter blends this weekend.
Experts believe gas prices will soon start to fall. Gasoline futures dropped 3.9 cents to US$2.962, on top of a 4.2 cent drop a day earlier.
Natural gas dropped yesterday after the Energy Department said supplies rose last week.
Natural gas in storage increased by 27 billion cubic feet to 3.429 trillion cubic feet for the week that ended Sept. 7. The supply is 11.1 percent more than the year-ago level of 3.087 trillion cubic feet and 9 percent more than the five-year average of 3.145 trillion cubic feet.
Natural gas ended down 2.6 cents at US$3.037 per 1,000 cubic feet.
Heating oil, which had risen 2 percent over the first three days of the week, fell less than a penny to US$3.2113.
The Fed said yesterday it will spend US$40 billion a month to buy mortgaged-back securities for an indefinite period. The purchases are intended to lower long-term interest rates to spur borrowing and spending. The Fed also extended a plan to keep short-term interest rates at record-low levels through mid-2015, as it attempts to boost an economy it says is too weak to reduce high unemployment.
Benchmark oil closed at US$98.31, up US$1.30. The last time it finished higher was May 4.
Expectations of action by the Fed, as well as the European Central Bank and China's government, have balanced gloomy economic news and kept oil in a narrow range the past few weeks.
Phil Flynn of the Price Futures Group said he expects the Fed decision to "reinvigorate" the stock market and boost the price of oil. The increase in oil should be gradual, however, as traders continue to focus on key economic indicators, especially jobs numbers.
"Even this massive bond buying, it's going to take some time to sink in," Flynn said.
Traders on yesterday also kept a close eye on unrest in the Middle East.
Protesters stormed the US Embassy compound in Yemen's capital yesterday, and there is violence around the US mission in Cairo. The US ambassador to Libya was killed Tuesday.
Brent crude, used to price international varieties of oil, ended up 55 cents at US$115.88 per barrel.
Meanwhile, the average price for a gallon of gas in the US rose to US$3.87, the highest since April 21 and just 7 cents below the high for the year. Refiners have run short on supplies of summer blends of gas, particularly in the Northeast. They're allowed to start selling cheaper winter blends this weekend.
Experts believe gas prices will soon start to fall. Gasoline futures dropped 3.9 cents to US$2.962, on top of a 4.2 cent drop a day earlier.
Natural gas dropped yesterday after the Energy Department said supplies rose last week.
Natural gas in storage increased by 27 billion cubic feet to 3.429 trillion cubic feet for the week that ended Sept. 7. The supply is 11.1 percent more than the year-ago level of 3.087 trillion cubic feet and 9 percent more than the five-year average of 3.145 trillion cubic feet.
Natural gas ended down 2.6 cents at US$3.037 per 1,000 cubic feet.
Heating oil, which had risen 2 percent over the first three days of the week, fell less than a penny to US$3.2113.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
