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Oil Gains on Greece's Hopes, Fed Meeting
Sep 21,2011 09:06CST
industry news
Source:SMM
Crude prices gained on Tuesday as Greece may receive more bailout fund while the Federal Reserve's meeting was expected to come up with more monetary boosting policy.

NEW YORK, Sept. 20 (Xinhua) -- Crude prices gained on Tuesday after choppy trading as Greece may receive more bailout fund after the second round conference call with its international creditors while the Federal Reserve's meeting was expected to come up with more monetary boosting policy.

The Fed started its two-day policy meeting on Tuesday. Investors pin their hopes heavily on the prospect that the U.S. central bank will announce some measures to help the sluggish economy. According to market analysts, the Fed tended to push long- term interest rate lower by buying longer-duration bonds, which could boost the risk appetite in the markets.

In Greece, the government held another round conference call with the International Monetary Fund, the European Union and European Central Bank, trying to persuade the lenders to provide more bailout fund. On Monday, the Greek ministry of economy said they were close to an agreement.

The crude prices also got lifted by the declining dollar and rising equities.

Earlier, crude prices fell as rating firm Standard & Poor's late Monday cut debt ratings of Italy, eurozone's third largest economy, adding to concerns of contagion in the debt-stressed bloc.

In addition, the International Monetary Fund cut its growth forecast for the global economy and warned that Europe and the U.S. could face another recession next year. Economic concerns limited crude gains.

Light, sweet crude for October delivery rose 1.19 dollars, or 1. 39 percent to settle at 86.89 dollars a barrel on the New York Mercantile Exchange, after trading from 85.11 dollars to 87.46 dollars. In London, Brent crude for November delivery rose 1.40 dollars, or 1.28 percent to close at 110.54 dollars a barrel.

 

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