Updated on
Summary Oil prices rose on hopes that Federal Reserve will take additional steps to prop up the US economy.
Oil prices climbed for a fourth day on hopes that the Federal Reserve will take additional steps to prop up the U.S. economy.Benchmark crude on Monday added 69 cents to $87.79 per barrel in midday trading in New York, while Brent crude rose by $1.05 to $102.47 per barrel in London.The Federal Reserve is considering new moves to boost consumer spending, and analysts are betting Fed Chairman Ben Bernanke will talk about that when he addresses Congress on Tuesday and Wednesday. As consumers spend more and the economy strengthens, demand for oil is likely to rise.The market is pricing in some hope that he (Bernanke) will do something tomorrow, said Phil Flynn, an analyst with Price Futures Group.Last month the Fed extended plans to drive down long-term interest rates. Fed officials are still open to taking more aggressive steps to support the economy, though policymakers disagree over whether now is the right time to do that.Oil prices rose despite some downbeat reports about the U.S. economy.The International Monetary Fund lowered its global growth forecast slightly due to continued financial troubles in Europe and slower expansion in China and India. The IMF expects the world economy to grow by 3.5 percent this year, down from a previous forecast of 3.6 percent.China said over the weekend that its economy was cooling off. Chinese Premier Wen Jiabao said the country has not yet entered into a recovery, and that its economic difficulties may continue for some time.In other futures trading, heating oil added 2.37 cents to $2.8119 per gallon, while wholesale gasoline rose by 2.19 cents to $2.838 per gallon. Natural gas fell by 7 cents to $2.80 per 1,000 cubic feet.
