Oil Rises On Fed Stimulus Plan
NEW YORK (AP) â¿¿ The price of oil is higher Wednesday after the Federal Reserve made another big move to stimulate the slow-growing U.S. economy.
The Fed said it will spend $45 billion a month to sustain an aggressive drive to keep long-term interest rates low. It also set a goal of keeping a key short-term rate near zero until unemployment drops below 6.5 percent. The central bank has launched three rounds of bond purchases since the financial crisis hit. The latest replaces a similar plan that was about to expire.
Stimulus measures generally weaken the dollar, which tends to direct more investors into buying commodities.
Benchmark crude rose $1.14 to $86.93 a barrel in New York.Before the Fed statement was released Wednesday afternoon, oil was moderately higher but muted by a big increase in the nation's gasoline supply. The government said gasoline supplies jumped twice as much as analysts anticipated last week. That's a sign of weak demand. Prices at the pump fell to $3.31 a gallon, about 4 cents higher than this day a year ago. Brent crude, used to price international varieties of oil, rose $1.44to $108.13 on the ICE Futures exchange in London. Other futures on the New York Mercantile Exchange: â¿¿ Heating oil rose 5 cents to $2.98 a gallon â¿¿ Natural gas fell 4 cents to $3.37 per 1,000 cubic feet. â¿¿ Wholesale gasoline rose 4 cents to $2.65 a gallon.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV