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Oil rises to US$116

Published: 
Thursday, September 13, 2012

 

NEW YORK—Oil rose in robust trading yesterday, with Brent futures rising a sixth session, after the US Federal Reserve launched another stimulus programme in which it will buy US$40 billion of mortgage debt per month until the outlook for jobs improves. Prices seesawed after the Fed statement, initially jumping US$1 per barrel and then swinging lower before climbing back into positive territory on expectations the move would encourage investors to push money into riskier assets including commodities and equities, as they have after previous stimulus initiatives.
 
The Thomson Reuters-Jefferies CRB .CRB commodity index rose 0.55 per cent, a sixth straight gain, to touch the highest level since March, while equities markets extended gains. Front-month October Brent crude, which expired yesterday, rose 94 cents to settle at US$116.90 a barrel, marking the sixth straight session the global benchmark has traded higher. Prices reached US$117.48 during the session, the highest level for Brent since the May 3 peak of US$118.45. The more actively traded November contract gained 55 cents to settle at US$115.88 a barrel. (Reuters)
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