Brent crude futures rose $2.22, or 2.6 percent, to reach $86.85 per barrel upon settlement, and US West Texas Intermediate crude futures rose $2.23, or 2.8 percent, to reach $82.67 per barrel upon settlement..
Oil prices received support from the Federal Reserve’s decision to keep interest rates unchanged in a range between 5.25 percent and 5.50 percent at its meeting yesterday, Wednesday..
Policy makers are finding it difficult to determine whether tightening monetary policy is already enough to control inflation, or whether an economy that is consistently beating expectations may need further adjustment..
The inflation rate in the United States stabilized at 3.4 percent in September for the third month in a row. Oil investors are closely following the Federal Reserve’s monetary policy decisions, fearing that large increases in interest rates will slow the economy and affect energy demand..
The Bank of England kept interest rates at the highest level in 15 years of 5.25 percent at its meeting, Thursday, in the second month in which interest rates have been stable after 14 consecutive hikes..
The Bank of England also stressed that it does not expect a cut in interest rates any time soon.
Regarding supplies, analysts told Reuters on Thursday that Saudi Arabia, the world’s largest oil exporter, is expected to extend its voluntary reduction in oil production by one million barrels per day until December..
Investors are also monitoring developments in the Middle East, which have put oil markets on edge, with the potential for a widening conflict to disrupt supplies across the region..
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