Fed policy hoist the Black Gold Price
Gold Investing April 26th, 2010
NEW YORK – Crude oil prices the world managed to get close to USD83 per barrel in trading Wednesday (17/3/2010) local time, along with the statement the Fed to keep interest rates low.
As quoted from The Associated Press, Thursday (18/3/2010), the price of the reference oil to contract April rose $ 1, 23 to USD82, 93 per barrel in trading the New York Mercantile Exchange (NYMEX). While in London, oil prices of Brent rose $ 1, 43 to USD81, 96 on the ICE Futures.
The Energy Information Administration said last week’s oil reserves rose 1 million barrels to 344 million barrels. Previously, analysts predict an increase of 1.9 million barrels.
The increase in oil prices is also influenced by the strengthening of the stock market. By midday trading, the Dow rose 44 points was triggered by a statement of the Fed and the Bank of Japan that will keep the benchmark interest rate low.
In addition, the meeting of OPEC agreed to not change the production targets this year, also helped boost the price of oil.
In trading NYMEX to contract April, the price of liquid oils rose 2.52 cents to $ 2, 14 per gallon, gasoline rose 3.47 cents to $ 2, 31 per gallon, and natural gas fell 4.4 cents to $ 4, 3 per 1,000 feet cubic.
Just to remind, the Fed keep interest rates near zero percent for a “period” and even sounded more optimistic.
The central bank expressed when the labor market will be stronger after a recession deepest and provide evidence of the movement as a promise to keep borrowing costs at the lowest level.
However, a note about the housing sector and the outlook for economic recovery is likely to be at the level of moderate. In addition, inflation will remain under control, interest overnight interbank be in the range of 0.25 percent.
Following that decision, most of the major banks are in direct contact with the Fed, predicted a rate hike in the fourth quarter
