Investing.com - Crude oil futures erased gains in Asian trading on Thursday but remained firm as investors bought the commodity on sentiment that the U.S. economy is poised to grow based on Federal Reserve comments made earlier.
A growing economy needs more fuels to expand.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in June traded at USD104.05 a barrel, down 0.07%, off from a session high of 104.13 and up from an earlier session low of USD103.95.
In the U.S., the Federal Open Market Committee, the Fed's monetary policy body, left rates unchanged near zero but offered cautious optimism over the fate of the world's largest economy.
"The Committee expects economic growth to remain moderate over coming quarters and then to pick up gradually," the FOMC said in a statement.
"Consequently, the Committee anticipates that the unemployment rate will decline gradually toward levels that it judges to be consistent with its dual mandate."
The news was somewhat bullish for crude, which rises amid economic expansion.
While the FOMC statement made no mention of a need for stimulus, yet Fed Chairman Ben Beranke said he couldn't rule out the use of monetary easing measures to ensure recovery.
"We remain entirely prepared to take additional balance sheet actions if necessary to achieve our objectives," Bernanke said at a news conference after the FOMC concluded its April monetary policy meeting.
"Those tools remain very much on the table and we will not hesitate to use them should the economy require that additional support."
Energy investors largely went long on oil as despite talk of a need for extraordinary monetary stimulus measures, the economy will improve.
Strong corporate earnings hitting the wire bolstered confidence in oil as well although profit taking sent the commodity dipping into negative territory in early Asian trading.
On the ICE Futures Exchange, Brent oil futures for June delivery were up 0.03% and trading at USD119.08 a barrel, up USD15.03 from its U.S. counterpart.
A growing economy needs more fuels to expand.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in June traded at USD104.05 a barrel, down 0.07%, off from a session high of 104.13 and up from an earlier session low of USD103.95.
In the U.S., the Federal Open Market Committee, the Fed's monetary policy body, left rates unchanged near zero but offered cautious optimism over the fate of the world's largest economy.
"The Committee expects economic growth to remain moderate over coming quarters and then to pick up gradually," the FOMC said in a statement.
"Consequently, the Committee anticipates that the unemployment rate will decline gradually toward levels that it judges to be consistent with its dual mandate."
The news was somewhat bullish for crude, which rises amid economic expansion.
While the FOMC statement made no mention of a need for stimulus, yet Fed Chairman Ben Beranke said he couldn't rule out the use of monetary easing measures to ensure recovery.
"We remain entirely prepared to take additional balance sheet actions if necessary to achieve our objectives," Bernanke said at a news conference after the FOMC concluded its April monetary policy meeting.
"Those tools remain very much on the table and we will not hesitate to use them should the economy require that additional support."
Energy investors largely went long on oil as despite talk of a need for extraordinary monetary stimulus measures, the economy will improve.
Strong corporate earnings hitting the wire bolstered confidence in oil as well although profit taking sent the commodity dipping into negative territory in early Asian trading.
On the ICE Futures Exchange, Brent oil futures for June delivery were up 0.03% and trading at USD119.08 a barrel, up USD15.03 from its U.S. counterpart.