Oil rose after the Federal Reserve announced it plans to keep U.S. interest rates near a record low through 2014 and a report showed durable goods orders in the world’s biggest crude-consuming country increased.
Futures advanced above $100 a barrel as Fed Chairman Ben S. Bernanke said yesterday that policy makers are considering more bond purchases to boost growth after extending the pledge to maintain interest rates.
Bookings (DGNOCHNG) for goods meant to last at least three years climbed 3 percent in December, data from the Commerce Department showed today.
“Between Bernanke and the durable goods orders, people are starting to feel a little bullish about the economy,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “The durable goods number points to increasing economic growth and fuel demand.”
Crude oil for March delivery rose $1.29, or 1.3 percent, to $100.69 a barrel at 10:26 a.m. on the New York Mercantile Exchange. Prices touched $101.39, the highest level since Jan. 19. Futures are up 15 percent in the past year.
Brent oil for March settlement climbed $1.53, or 1.4 percent, to $111.34 a barrel on the ICE Futures Europe exchange in London.
The Federal Open Market Committee had previously said the benchmark rate would stay low through mid-2013. Fed officials also lowered their projections for economic expansion and inflation for this year and next.
Price Range
Oil in New York has traded in a $6.34 range for the past month with futures staying between $97.40 and $103.74.
“Earlier this week we wanted to test the bottom-end of the range,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “After Bernanke made his statement yesterday, the shorts got cold feet. Now we’re back in the middle of the range and are looking for a catalyst to launch another assault at the upper end.”
U.S. durable goods orders were forecast to climb 2 percent last month, based on the median of estimates by 78 economists surveyed by Bloomberg News.
Another report showed jobless claims increased last week. New home sales last month probably rose to the highest level in a year, another report may show.
The index of U.S. leading indicators rose in December for a third month, indicating the economy will keep growing in early 2012.
The Conference Board’s gauge of the outlook for the next three to six months increased 0.4 percent after climbing 0.2 percent in November, the New York-based group said today. The median forecast of 44 economists surveyed by Bloomberg News called for a gain of 0.7 percent.
“Negative economic sentiment in the U.S. has receded,” McGillian said.
Debt Talks
Talks on a debt swap to avert a Greek default resume today as international policy makers argue over the mounting cost of the rescue. European finance ministers have insisted bondholders take bigger losses on their Greek debt.
Oil prices have shifted over the last two years on the latest developments in the European debt crisis and the projected impact it would have on energy demand. The crisis that began in Greece has spread to Ireland, Portugal, Italy and Spain and threatens economic growth in the region.
Futures advanced above $100 a barrel as Fed Chairman Ben S. Bernanke said yesterday that policy makers are considering more bond purchases to boost growth after extending the pledge to maintain interest rates.
Bookings (DGNOCHNG) for goods meant to last at least three years climbed 3 percent in December, data from the Commerce Department showed today.
“Between Bernanke and the durable goods orders, people are starting to feel a little bullish about the economy,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “The durable goods number points to increasing economic growth and fuel demand.”
Crude oil for March delivery rose $1.29, or 1.3 percent, to $100.69 a barrel at 10:26 a.m. on the New York Mercantile Exchange. Prices touched $101.39, the highest level since Jan. 19. Futures are up 15 percent in the past year.
Brent oil for March settlement climbed $1.53, or 1.4 percent, to $111.34 a barrel on the ICE Futures Europe exchange in London.
The Federal Open Market Committee had previously said the benchmark rate would stay low through mid-2013. Fed officials also lowered their projections for economic expansion and inflation for this year and next.
Price Range
Oil in New York has traded in a $6.34 range for the past month with futures staying between $97.40 and $103.74.
“Earlier this week we wanted to test the bottom-end of the range,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “After Bernanke made his statement yesterday, the shorts got cold feet. Now we’re back in the middle of the range and are looking for a catalyst to launch another assault at the upper end.”
U.S. durable goods orders were forecast to climb 2 percent last month, based on the median of estimates by 78 economists surveyed by Bloomberg News.
Another report showed jobless claims increased last week. New home sales last month probably rose to the highest level in a year, another report may show.
The index of U.S. leading indicators rose in December for a third month, indicating the economy will keep growing in early 2012.
The Conference Board’s gauge of the outlook for the next three to six months increased 0.4 percent after climbing 0.2 percent in November, the New York-based group said today. The median forecast of 44 economists surveyed by Bloomberg News called for a gain of 0.7 percent.
“Negative economic sentiment in the U.S. has receded,” McGillian said.
Debt Talks
Talks on a debt swap to avert a Greek default resume today as international policy makers argue over the mounting cost of the rescue. European finance ministers have insisted bondholders take bigger losses on their Greek debt.
Oil prices have shifted over the last two years on the latest developments in the European debt crisis and the projected impact it would have on energy demand. The crisis that began in Greece has spread to Ireland, Portugal, Italy and Spain and threatens economic growth in the region.
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