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Crude steady on German data, Fed sentiments

Published 04/22/2012, 10:37 PM
Updated 04/22/2012, 10:38 PM
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Investing.com - Crude oil futures were steady in Asian trading on Monday, hovering just below Friday's gains stemming from optimism over improving business morale in Germany and sentiment the Federal Reserve will be less likely to stimulate the U.S. economy via easing measures.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in June traded at USD103.81 a barrel, down 0.07%, off from a session high of 103.91 and up from an earlier session low of USD103.71.

Hopes the global economy is improving are fueling sentiment the world will need more oil to fuel its growth.

In Europe, the German Ifo business sentiment index for April rose to 109.9 from 109.8 the previous month, outpacing expectations for the figure to drop to 109.5.

April's figure represented a nine-month high for Europe's largest economy.

Furthermore, G20 countries agreed to arrange USD430 billion in fresh funding for the International Monetary Fund to help the multilateral lending institution contain the eurozone debt crisis and cushion the rest of the world from it.

Later this week in the U.S., the Federal Reserve's monetary policy body, the Federal Open Market Committee, is set to address interest rates and whether the economy merits further stimulus measures.

Since the downturn, the Federal Reserve has pumped trillions of dollars into the U.S. economy by buying assets from banks, a stimulus policy known officially as quantitative easing but dubbed by critics as printing money out of thin air.

Market talk is growing the Fed may feel more inclined to let the economy stand on its own two feet, which would be bullish for oil, as a growing U.S. economy will need more oil and derivatives to fuel its expansion.

On the ICE Futures Exchange, Brent oil futures for June delivery were down 0.08% and trading at USD118.75 a barrel, up USD14.94 from its U.S. counterpart.






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