Oil Reached Its Highest Level Triggered Stimulus The Fed
Oil reached its highest level triggered stimulus the Fed.
NEW YORK – Oil prices hit a 4 months on Friday (Saturday morning GMT), driven by a new Middle East turmoil and the promise stronger growth of new QE3 stimulus plan Federal Reserve.
In New York benchmark contract, light sweet crude or West Texas Intermediate (WTI) for delivery in October, beyond the 100 dollars before slipping back in late trading to 99.00 U.S. dollars a barrel, up 69 cents from Thursday.
In London, Brent North Sea crude for November delivery ended at 116.66 dollars a barrel, 78 cents higher than Thursday.
In London morning deals, Brent reached 117.95 U.S. dollars per barrel, hitting its highest level since early May.
The Fed’s announcement on Thursday about a new stimulus was open – a program of bond purchases or quantitative easing – sending the dollar lower and increased oil demand expectations.
“The announcement of the Fed has caused crude oil prices rose to a few months,” said Commerzbank analyst Carsten Fritsch.
The spread of anti-US protests around the oil-rich Middle East and beyond, is also raising concerns that the flow of crude from the oil-rich region may be affected.
“The risk of supply psychological support for oil prices,” Fritsch said.
“This region (the Middle East), which is so important to the oil supply, so far from stable, something which is likely to lead to a lasting risk premium,” he said.