Oil rises to near six-month high as Fed move weakens dollar
Friday, 5 November 2010
SINGAPORE, Nov 4 (Reuters): Oil rose for a fourth straight day Thursday, trading near six-month highs, as the dollar weakened after the US Federal Reserve unveiled a plan to buy debt and pump more money into the economy.
US crude for December rose 61 cents to $85.30 a barrel at 0435 GMT, after touching $85.36 Wednesday, the highest intraday price since May 4. ICE Brent for December gained 56 cents to $86.94.
The US central bank on Wednesday said it would buy around $75 billion in Treasury bonds per month through mid-2011, totaling around $600 billion. The dollar weakened about 0.2 per cent Thursday against a basket of currencies.
Wide anticipation of the Fed stimulus measures -- meant to avert deflation and create jobs by easing long-term borrowing costs -- boosted the price of oil from mostly within a range of $72-$80 in September to $80 and above in October and November.
US crude for December rose 61 cents to $85.30 a barrel at 0435 GMT, after touching $85.36 Wednesday, the highest intraday price since May 4. ICE Brent for December gained 56 cents to $86.94.
The US central bank on Wednesday said it would buy around $75 billion in Treasury bonds per month through mid-2011, totaling around $600 billion. The dollar weakened about 0.2 per cent Thursday against a basket of currencies.
Wide anticipation of the Fed stimulus measures -- meant to avert deflation and create jobs by easing long-term borrowing costs -- boosted the price of oil from mostly within a range of $72-$80 in September to $80 and above in October and November.