Oil prices strike four-month peaks on Fed stimulus move

London, Sep 15:

prices hit four-month highs on Sep 14 after the Federal Reserve launched a new round of economic stimulus aimed at lifting growth in the world's largest crude consumer.

The market also won strong support from ongoing geopolitical tensions in the Middle East. In London morning deals, Brent North Sea crude for delivery in November soared to USD 117.95 a barrel, touching the highest level since early May.

New York's main contract, West Texas Intermediate (WTI) or light sweet crude for October, surged to a similar peak at USD 100.42 a barrel.

Global markets rallied after the Fed yesterday said it would start a third programme of purchasing USD 40-billion per month in mortgage-backed bonds, known as quantitative easing (QE3).

The Fed added that it would continue with the scheme until it saw substantial improvement in the jobs market. The US central bank also pledged to keep its benchmark interest rate at ultra-low levels until at least mid-2015.

"The Fed's announcement has caused crude oil prices to climb to multi-month highs," said Commerzbank analyst Carsten Fritsch.

AFP