Oil prices stable, Brent above $125

28th April 2011, Comments 0 comments

World oil prices steadied on Thursday ahead of growth data in the United States, the biggest crude-consuming nation.

Brent North Sea crude for delivery in June gained 10 cents to $125.23 a barrel in London deals.

New York's main futures contract, West Texas Intermediate (WTI) or light sweet crude for June, dipped five cents $112.69 a barrel, after sealing a 2.5-year high of $113.70.

"Brent crude has risen to just short of $126 a barrel... bringing it closer to the 32-month high of early April," said Commerzbank analyst Carsten Fritsch.

"WTI crude has meanwhile reached almost $114 a barrel, a price level last seen in September 2008."

Traders were awaiting the publication on Thursday of first-quarter US growth data.

Crude oil prices had risen on Wednesday on the back of the Federal Reserve's decision to continue pursuing an exceptionally supportive monetary policy.

The Fed announced that it would maintain its key interest rate at an ultra-low zero to 0.25 percent to support economic growth.

Citing the economy's only "moderate" recovery, the central bank also kept the door open for more economic stimulus, while saying its current $600 billion program would be allowed to run its forecast course through June.

The Fed's easy monetary policy weighed on the dollar, helping to support oil prices. A weaker US unit makes oil and other dollar-priced commodities more attractive to buyers using stronger currencies.


© 2011 AFP

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