New stimulus plan lifts oil

Oil rose yesterday after the US Federal Reserve launched another stimulus program, this time it will buy $ 40 billion of mortgage debt per month until the outlook for jobs improves. In a significant shift in the direction of US monetary policy, the Fed’s policymaking committee tied its unconventional bond buying directly to economic conditions. Oil prices reeled after the statement, initially surging up by $1 and then swinging lower before climbing back into positive territory. Front-month October Brent crude traded up 48 cents to $ 116.44 a barrel at 1.02 p.m. EDT, while the more actively traded November contract gained 17 cents to trade at $ 115.50 a barrel. US crude rose 68 cents to $ 97.69 a barrel, off earlier highs of $ 98.58, the highest since $ 102.72 on May 4. From : Arabnews