Ahead of reports forecast indicating an improving U.S. economy outlook, oil trades near the highest close in four months. Futures went through a slight change in New York after hiking to $100.42 a barrel on Sept. 14 as the Federal Reserve announced its intentions to start purchasing U.S. mortgage securities.
Economists claim that new home construction and sales of previously owned houses increased in August in the U.S.
According to Mohammad Ali Khatibi, Iran’s governor to the OPEC, current crude prices aren’t a threat to the world economy.
There is a strong positive reaction to the Fed’s easing plan which is due to its open-ended nature.
Oil for October delivery rose 14 cents to $99.14 a barrel in electronic trading on the New York Mercantile Exchange in early Asian trading hours. The contract gained 0.7 percent to close at $99 on Sept. 14, which is the best result since May 3rd. Oil prices have increased by 13% since last year.
Brent oil for November settled at $116.97 a barrel on the London-based ICE Futures Europe exchange. The front-month premium for the European benchmark contract to West Texas Intermediate settled at $17.53.
Hedge funds boosted expectations on oil to a four-month high just before futures soared to 2.2 percent. This happened after Federal Reserve Chairman Ben S. Bernanke introduced his plan for a new round of growth-boosting measures.
Commodity Futures Trading Commission’s Commitments of Traders report showed that money managers increased net-long positions by 5 percent in the trading week on Sept. 11.
