Oil above $99 after U.S. Federal Reserve vows to jolt economySeptember 14, 2012 - 10:25 AMT PanARMENIAN.Net - Oil prices rose above $99 a barrel Friday in Asia after the U.S. Federal Reserve announced a plan to jolt the U.S. economy and unrest in the Middle East heightened concerns about supply, AP reports. Benchmark oil for October delivery was up 95 cents at $99.26 per barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract closed at $98.31, up $1.30, on Thursday. Brent crude was up 77 cents at $116.62 a barrel on the ICE futures exchange in London. The Fed said it will spend $40 billion a month to buy mortgaged-back securities for an indefinite period. The purchases are intended to lower long-term interest rates to spur borrowing and spending. The Fed also extended a plan to keep short-term interest rates at record-low levels through to mid-2015, as it attempts to boost an economy it says is too weak to reduce high unemployment. Expectations of action by the Fed, as well as the European Central Bank and China's government, have balanced gloomy economic news and kept oil in a narrow range the past few weeks. Oil analyst Stephen Schork said in a commentary that the Fed decision, was tantamount to "flooding the market with dollars." Because oil is traded in dollars, holders of currencies stronger than the dollar would buy it, causing its value to go up. Traders on Friday also kept a close eye on unfolding unrest in the oil-rich Middle East. Protesters stormed the U.S. Embassy compound in Yemen's capital Thursday. Ongoing clashes have been taking place around the U.S. mission in Cairo, and the U.S. ambassador to Libya was killed Tuesday. In other Nymex trading, gasoline was up 1.9 cents at $2.981 a gallon and heating oil added 1 cent to $3.221 a gallon. Natural gas fell 1.7 cents to $3.02 per 1,000 cubic feet. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Pashinyan’s spokesperson denies intention to visit Baku for COP29 Pashinyan’s agenda doesn’t include a trip to Baku for the COP29 conference, his press secretary Nazeli Baghdasaryan has said. Russia accuses West of preparing invasion of CSTO countries NATO is preparing an invasion of the CSTO countries, the number of provocations in the air is growing, Sergei Shoigu has said. Lithuania sending €100,000 to help Armenia fight floods consequences Armenian Prime Minister Nikol Pashinyan took to social media to thank his Lithuanian counterpart for the contribution. Armenia: Rescue workers restore pedestrian bridge for flood-hit community Rescue workers on Wednesday, June 5 restored a pedestrian bridge in the town of Alaverdi in Armenia’s north. |