Millennium Post

Oil prices rise in Asia

Oil prices rose in Asia on Monday as dealers welcomed the US Federal Reserve's plan to kickstart the economy, while tensions in the Middle East also provided support, analysts said.

New York's main contract, light sweet crude for delivery in October gained two cents to USD 99.02 a barrel and Brent North Sea crude for November added nine cents to USD 116.75.

IG markets said in a report that crude prices were still basking in the glow of the Fed's announcement on Thursday that it would start a third round of bond buying to stimulate the economy, known as quantitative easing [QE3].

'The big question is how long this Fed-inspired rally will continue as QE3 was the last bazooka to be used in the central bank's arsenal,' the report stated.

'For the time being, it has given a powerful shot in the arm for global markets.'

The Brent contract had hit four-month highs on Friday after the Fed announcement.

Anti-US demonstrations have been sparked across the oil-rich Middle East and other Muslim nations against a film deemed insulting to the Prophet Mohammed, spurring prices on fears over supplies.
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