Commodity Daily News

Crude Oil Rises to $87.65 a Barrel

Crude oil prices climbed for the first time in three days during yesterday's session on expectations the Federal Reserve will take further actions in order to assist the slowing U.S. economy.

The Federal Open Market Committee will end its two-day meeting today and is expected to announce another quantitative easing. This is expected to support the U.S. economy, and as a result to increase demand for energy.

Crude oil has gained about 250 pips as a result, and a barrel of oil was traded for as high as $87.65, recovering from a weekly low of $84.90 a barrel.

Looking ahead to today, the U.S. Crude Oil Inventories report is scheduled at 14:30 GMT. Current expectations are that U.S. stockpiles have slipped by 1.6M during the past week. If the end result will be similar, crude oil prices might continue to strengthen today.