Oil prices have experienced significant gains, an event that is being credited in part to the moves taken by the US Federal Reserve last week, in which it announced it would inject $40 billion a month into the US economy. These movements also coincide with the forthcoming release of a forecast that is due to show the economy strengthening.
Brent crude for November delivery was up 26 cents at $116.92 a barrel, trading at a four-month high, while US crude surpassed the $99 mark. Some analysts expect Brent crude to advance towards $120 a barrel by the end of the month.
In addition to announcing it would begin a third programme of quantitative easing, the Federal Reserve added that it would continue with the scheme until it was confident that substantial improvement was being made in the jobs market.
Meanwhile, the US central bank also pledged to keep its benchmark interest rate at record-low levels until at least mid-2015. “For the time being, the oil price has given a powerful shot in the arm for global markets,” IG markets stated in a report.
