11:13 AM
alphaadvisory
Crude oil futures are trading near four month highs before the US
Federal Reserve Open Market Committee meeting is coming out with its
statement on monetary policy measures.
The nation is the biggest consumer of crude oil and the FOMC meet may decide to continue with stimulus measures, analysts say, even as there could be dissent amongst members on continuing with asset purchase programs and maintaining record low interest rates.
“The Federal Open Market Committee will renew its commitment to asset buying during a two-day meeting that began yesterday, according to a Bloomberg News survey of 44 economists.” Bloomberg News said in a report.
The US Federal Reserve currently buys $45 bn in Treasury notes and $40 billion in mortgage-backed securities on a monthly open-ended scheme. The purchase is tethered to the recovery in job markets and would be pursued as long as inflation remains latched to the gate.
On the NYMEX, crude oil for delivery on March 13 was spotted trading at $97.54 a barrel a loss of $0.03 or 0.03%. Brent crude oil for delivery on the same date was seen trading at $114.41 a gain of $0.22 or 0.19%.
“A lot of people are optimistic on the global economic recovery,” said Ken Hasegawa, an energy trading manager at Newedge Group in Tokyo to Bloomberg.
“Demand is gradually recovering. The DOE data won’t change the general direction of the market.” he added.
Meanwhile, US crude oil stockpiles has climbed for a 4th week to 368.2 million barrels last week according to industry-funded American Petroleum Institute.
On India's MCX, crude oil for delivery on February 19 was spotted trading at Rs.5232 a barrel, a gain of 0.08% as of 10.42 AM IST.
The nation is the biggest consumer of crude oil and the FOMC meet may decide to continue with stimulus measures, analysts say, even as there could be dissent amongst members on continuing with asset purchase programs and maintaining record low interest rates.
“The Federal Open Market Committee will renew its commitment to asset buying during a two-day meeting that began yesterday, according to a Bloomberg News survey of 44 economists.” Bloomberg News said in a report.
The US Federal Reserve currently buys $45 bn in Treasury notes and $40 billion in mortgage-backed securities on a monthly open-ended scheme. The purchase is tethered to the recovery in job markets and would be pursued as long as inflation remains latched to the gate.
On the NYMEX, crude oil for delivery on March 13 was spotted trading at $97.54 a barrel a loss of $0.03 or 0.03%. Brent crude oil for delivery on the same date was seen trading at $114.41 a gain of $0.22 or 0.19%.
“A lot of people are optimistic on the global economic recovery,” said Ken Hasegawa, an energy trading manager at Newedge Group in Tokyo to Bloomberg.
“Demand is gradually recovering. The DOE data won’t change the general direction of the market.” he added.
Meanwhile, US crude oil stockpiles has climbed for a 4th week to 368.2 million barrels last week according to industry-funded American Petroleum Institute.
On India's MCX, crude oil for delivery on February 19 was spotted trading at Rs.5232 a barrel, a gain of 0.08% as of 10.42 AM IST.
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