Singapore, August 13: Oil prices rose in Asian trade on Thursday after the Federal Reserve said the recession-hit US economy was stabilising, analysts said.
New York’s main contract, light sweet crude for September delivery, climbed 55 cents to USD 70.71 a barrel.
Brent North Sea crude for September delivery went up 56 cents to USD 73.45.
Oil and US stocks rallied Wednesday after the Fed, at the conclusion of a two-day meeting, said that “economic activity is levelling out”.
The policymaking Federal Open Market Committee (FOMC) maintained ultra-low interest rates, but said it would gradually end a program of Treasury bond purchases after completing a USD 300 billion scheme in October.
“FOMC kept rates unchanged and its statement was mostly in line with what markets had anticipated,” said Dariusz Kowalczyk, Hong Kong-based chief investment strategist with SJS Markets.
“Policymakers seemed more confident that inventories are becoming better aligned with sales, a prelude to recovery in production,” he said.
The US economy is the world’s largest energy consumer and an economic recovery is seen as key to boosting global oil demand after the recession.
–Agencies