Friday, September 14 10:53:17
Brent crude rose for the seventh straight session today, climbing above $117 a barrel on hopes for stronger global demand for oil after the U.S. Federal Reserve launched an aggressive programme to stimulate the economy.
Brent climbed to a four-month peak of $117.72 a barrel in earlier trade and by 0900 GMT was up $1.53 at $117.41. The global North Sea benchmark is on track to end the week up more than 2 percent.
U.S. crude rose $1.46 to $99.77 a barrel after briefly hitting a four-month high of $99.64. It is set to close the week up 3 percent.
"The Fed is looking to purchase $40 billion worth of mortgage-backed securities per month for an open ended period, so that suggests there is going to be ongoing stimulus into the economy for an indefinite time," said Natalie Rampono, a commodity strategist at ANZ.
"That is the key reason oil prices hit a four-month high."
The Fed's decision to tie its third bond-buying programme directly to economic conditions was an unprecedented step that marked a big escalation in its efforts to drive down U.S. unemployment. The U.S. dollar on Friday fell to a four-month low against the euro due to the Fed action. Losses in the dollar can support dollar-denominated commodities such as oil by making them cheaper to consumers using other currencies.
Oil was also boosted by escalating anti-U.S. protests over a film demonstrators consider blasphemous to Islam. (C ) Reuters