“Oil traded near the highest price in more than four months in New York as the Federal Reservemaintained an asset-purchase program to boost the economy of the world’s largest crude-consuming nation.
West Texas Intermediate was little changed, heading for the biggest monthly gain since August. The Fed will keep buying securities at a rate of $85 billion a month, the Federal Open Market Committee said after a two-day meeting. German unemployment unexpectedly declined in January for the first time in 10 months, adding to signs that Europe’s largest economy is gathering pace. Oil gained a third day yesterday even after data showed U.S. crude stockpiles rose twice as much forecast.
“The Fed is still providing enough money,” said Andy Sommer a senior oil analyst at Axpo Trading AG in Dietikon, Switzerland. “I’m pretty optimistic on the demand side. But there’s an ongoing supply overhang and prices should come down in the spring.”
WTI for March delivery was at $97.75 a barrel in electronic trading on the New York Mercantile Exchange, down 20 cents, as of 1:08 p.m. London time. The average volume of all contracts traded was 21 percent below the 100-day average. Futures gained 37 cents to $97.94 yesterday, the highest close since Sept. 14. Prices are up 6.5 percent in January and poised for a third monthly increase, the longest rising streak since April 2011.
Brent for March settlement on the London-based ICE Futures Europe exchange was at $114.85 a barrel, down 5 cents. The average volume of all contracts traded was 6.3 percent below the 100-day average. The European benchmark grade was at a premium of $17.04 to WTI futures, from $16.96 yesterday.
