Forexpros – Crude futures rose Thursday after the Federal Reserve said it would keep interest rates slow through the end of 2014 with the aim of speeding up economic growth, which would require more oil and derivatives in the process.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at USD99.83 a barrel in Asian trading, up 0.44%.
The commodity hit an earlier session high of USD100.05 and a low of USD99.71.
Unsatisfied with the pace of the economy when it comes to unemployment rates and price stability, the Federal Reserve announced on Wednesday that it would leave benchmark interest rates low through 2014, longer than an original estimate through 2013.
A more robust economy would need more oil to fuel its expansion, which sent crude rising and the dollar falling, the byproduct of loose monetary policies.
A weaker dollar often sends commodity prices climbing since it increases their appeal as a hedge was well as by making dollar-priced commodities less expensive for holders of other currencies.
Meanwhile, the U.S. Energy Information Administration said in its weekly report that crude oil inventories fell by 3.6 million barrels in the week ended January 20.
Total U.S. crude inventories stood at 334.8 million barrels, remaining in the upper limit of the average range for this time of year.
Fourth-quarter earnings continued to hit the wire, many of which suggesting manufacturing continues to improve, while ongoing tensions in the Middle East surrounding Iran and its threats to close the Strait of Hormuz pushed up oil as well.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for March delivery were up 0.07% and trading at USD110.58 a barrel, up USD10.75 from its U.S. counterpart.
The gap in price between the two contracts hovers in the middle between a nearly USD20.00 all-time high and a historical spread of USD1.00.
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