Singapore: Oil prices rose in Asian trade on Thursday after the Federal Reserve said the recession-hit US economy was stabilising, analysts said.
New York's main contract, light sweet crude for
September delivery, climbed 55 cents to USD 70.71 a barrel.
Brent North Sea crude for September delivery went up 56
cents to USD 73.45.
Oil and US stocks rallied Wednesday after the Fed, at
the conclusion of a two-day meeting, said that "economic
activity is levelling out".
The policymaking Federal Open Market Committee (FOMC)
maintained ultra-low interest rates, but said it would
gradually end a program of Treasury bond purchases after
completing a USD 300 billion scheme in October.
"FOMC kept rates unchanged and its statement was mostly
in line with what markets had anticipated," said Dariusz
Kowalczyk, Hong Kong-based chief investment strategist with
SJS Markets.
"Policymakers seemed more confident that inventories are
becoming better aligned with sales, a prelude to recovery in
production," he said.
The US economy is the world's largest energy consumer
and an economic recovery is seen as key to boosting global oil
demand after the recession.
Bureau Report
First Published: Thursday, August 13, 2009, 10:19