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Crude reverses losses as Fed easing prospects ebb

Published 03/12/2012, 09:34 PM
Updated 03/12/2012, 09:37 PM
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Investing.com - Crude oil futures gained in Asian trading on Tuesday, erasing losses stemming from fears China's growth was cooling and fueled by hopes the U.S. economy continues building as evidenced by talk the Federal Reserve is less keen on priming the economy via easing.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at USD106.68 a barrel, up 0.32%.

The commodity hit an earlier session high of USD106.70 and a low of USD106.44.

Crude took an earlier hit on talk that Chinese growth was slowing, while high gasoline prices in the U.S. may send consumers balking and demanding less.

However, talk that the Federal Reserve will consider holding off on rolling out measures to stimulate the economy could mean the economy is gaining steam on its own and will need more oil to grow.

Also in Europe, European policymakers are set to formally approve a EUR130 billion rescue fund for Greece now that the country has agreed on restructuring its debts with private creditors.

The news douses fears Europe was growing increasingly mired in its debt crisis.

Ongoing unrest in the Middle East, especially tensions between the West and Iran continued to support the commodity.

On the ICE Futures Exchange, Brent oil futures for May delivery were up 0.22% and trading at USD125.11 a barrel, up USD18.43 from its U.S. counterpart.

The gap in price between the two contracts is pushing toward the higher end of a range between a nearly USD20.00 all-time high and a historical spread of USD1.00.






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