Hopes for Bernanke Aid to US Economy Pushes Current Crude Prices Higher

Current crude prices moved up to $98 a barrel as oil markets become increasingly motivated by signs of pending action by the Federal Reserve to to aid the slow recovery of the United States economy.

The oil price per barrel in the NYMEX for delivery in October gained 66 cents to reach $98.03 during midday Bangkok time of the electronic trading. The contract had a 42-cent increase to $97.26 a barrel during the previous trading day.

In London’s ICE Futures exchange, the current crude price of Brent gained $1.01 to $115.92.

The Fed’s July minutes presented a scenario that officials felt much urgency regarding the need to take bold new actions to boost the the economy if it does not show signs of significant improvement soon. However, no particular details were given as to the possible steps that will be taken or when they are to be done.

The oil price per barrel has increased by almost $8 since the month of August started. The increase is partly due to hopes that China, the U.S. and Europe will do more to boost the growth of their individual economies. Weaker growth affects the demand for crude as well as for other energy commodities.

Elsewhere in the energy markets, the price of heating oil gained 1.9 cents to $3.1559 a gallon. That of wholesale gasoline moved up by 2.7 cents to $2.9654. And the cost of natural gas has increased by 2.9 cents to $2.852 per mcf (thousand cubic feet).

By: Chris Termeer