Fed stimulus hopes push oil higher

23 Aug 2012, 7:27 am   -   Source: AAP

Oil prices close higher after a Federal Reserve report indicated the central bank may soon act to stimulate the sluggish US economy.

Oil prices have finished higher after a Federal Reserve report indicated that the central bank was close to taking action to further boost the economy.

New York's main contract, West Texas Intermediate crude for delivery in October, on Wednesday added 42 US cents from Tuesday to close at $US97.26 a barrel.

In London, Brent North Sea crude for October reversed early losses to gain 27 US cents to $US114.91.

Oil prices were lower in earlier trade, but buyers pushed back in after the release of the minutes of the Fed's July 31-August 1 meeting, which showed policy makers leaning toward more stimulus action "fairly soon" unless economic data turns around.

The report also gave a boost to the euro, which tends to pull up dollar-denominated crude prices when it gains against the greenback.

The US government's weekly inventory of crude and fuel stocks showed a slightly tightening supply, though overall inventories were flush amid demand that is weaker than last year.

Total oil products supplied to the market over the past four weeks were 2.2 per cent below last year's level, the US Department of Energy said.

  • Follow us: 
  • Follow us on Facebook
  • Follow us on Twitter
  • Follow us on Youtube