Brent Crude sitting above US$ 118 – investors await decision from US Federal Reserve
The price of Brent Crude remains above US$ 118 per bbl as investors await the results of a US Federal Reserve policy meeting, which could bring about another round of monetary easing.
A hoped-for third round of easing, referred to as QE3, would reportedly improve market liquidity and boost the appetite for more risk-intensive commodities such as oil. Ken Hasegawa, of Newedge Brokerage said, “We are not expecting drastic changes from the Fed, but we are hoping to hear hints about QE3.”
The value of Brent crude rose by 13 cents to US$ 118.29 today, whilst US crude rose 15 cents to US$ 103.70.
Analysts however, have suggested that investors are likely to be disappointed in their hopes for a new round of monetary easing, as US economic growth is showing enough promise to weaken the case for the measure.
The price of US crude has been supported in part by an unexpected 985 000 bbl decline in stockpiles instead of the rise to 2.7 million. Gasoline stockpiles fell by 3.6 million bbls, marking a significant increase on the expected drop of 900 000 bbls.
Edited from various sources by David Bizley
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/25042012/brent_crude_sits_above_usd118_investors_await_us_fed_decision/
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