The Canadian Press - ONLINE EDITION
Posted: 06/26/2013 4:25 AM | Comments: 0
Last Modified: 06/27/2013 12:52 AM
BANGKOK - The price of oil rose Thursday on expectations the Federal Reserve's monetary stimulus campaign will stay in place despite a vow to being scaling it back.
The official estimate of U.S. economic growth was Wednesday lowered to an annual rate of 1.8 per cent for the January-March quarter, sharply down from a previous estimate of 2.4 per cent. That raised hopes that the U.S. Federal Reserve will keep in place its bond buying program, which has been a boon to stock and commodity markets by lowering interest rates and weakening the dollar.
The Fed has said its US$85 billion a month of government bond purchases could be scaled back starting later this year if the economy keeps improving.
Benchmark oil for August delivery was up 40 cents to $95.90 a barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract rose 18 cents Wednesday to close at $95.50 per barrel.
Analysts said confidence indicators in Europe as well as speeches by Fed officials expected later in the day would provide further encouragement to markets.
"We expect more soothing comments from Fed speakers while Eurozone data will point to gradual improvement," Anthony Lam of Credit Agricole CIB in Hong Kong said in a commentary.
Brent crude, which is used to set prices for oil used by many U.S. refineries to make gasoline, rose 66 cents to $102.32 a barrel.
In other energy futures trading on the Nymex:
— Natural gas rose 0.4 cent to $3.741 per 1,000 cubic feet.
— Heating oil rose 1.2 cents to $2.867 a gallon.
— Wholesale gasoline rose 0.8 cent to $2.725 a gallon.
(TSX:ECA, TSX:IMO, TSX:SU, TSX:HSE, NYSE:BP, NYSE:COP, NYSE:XOM, NYSE:CVX, TSX:CNQ, TSX:TLM, TSX:COS.UN, TSX:CVE)
Have you found an error, or know of something we’ve missed in one of our stories? Please use the form below and let us know.
Having problems with the form?Contact Us Directly
Cabinet rebel Theresa Oswald says she's considering a NDP leadership run
Woman gets two-year jail term for running over man with his own truck
Fifteen Manitoba First Nations haven't disclosed their financial documents
Jets centre Lowry slapped with one-game suspension
City's planning, property and development chief plans to retire
Winnipeg's first battery-powered electric bus goes into service tomorrow
MD sees charges dropped
City committee gives three fire halls historic designations
News and talk radio still at the top of Winnipeg radio ratings
Liquor store workers start voting today on possible strike before Christmas
Siloam Mission opens podiatry room to help homeless with foot care
Zoo has faults, but it's not all bad
Polo Park debuts shopping app in time for Black Friday
Funds for Guay Park riverbank project going to balance city's books instead
Queen of crime writing PD James dies aged 94
CBC, NHL websites briefly affected by hack
Flap over leadership-vote plans
Sexual-assault myths persist
Ferguson fallout: Dozens arrested in Calif. unrest
Bowman among local celebrities to appear in RWB's Nutcracker
Manitoba economic outlook 'a good news story': Conference Board
'Fun party for two' ends in tragedy
General strike shuts down services across Greece
'Bannock Lady' Guiboche among human rights awards recipients
Farmers' incomes beefed up
Tory MP retracts video devices advice
Warmer weather -- and snow -- on the way
Ugly but still worth two points
Roll the (delicious) dice
Dog River faces crisis in 'Corner Gas' movie
Fire hits St. Norbert homes
Hut stuff: This year's winning entries stretch the imagination
Economic outlook anything but boring
Jazz for justice
Israel says it busted Hamas cell planning attacks
Cold Specks expands sound to create music she won't tire of
Syrian troops kill 30 rebels near Damascus
OPEC keeps oil output on hold despite low prices
Putin's tiger ravages goat farm in northeast China
Taliban attack rocks upscale Kabul district