Investing.com - Crude oil futures pushed higher on Tuesday, on expectations for more easing by the Federal Reserve, but investors remained wary amid concerns over the U.S. fiscal cliff and political uncertainty in Italy.
On the New York Mercantile Exchange, light sweet crude futures for delivery in January traded at USD85.78 a barrel during European morning trade, up 0.26% for the day.
Crude prices were supported by expectations that the Federal Reserve will announce further stimulus measures at the conclusion of its two-day policy meeting on Wednesday, a move that would likely weaken the greenback.
The U.S. currency tends to move inversely to dollar-denominated crude, as a stronger greenback makes oil more expensive for holders of other currencies.
Investors remained wary as they awaited fresh developments in negotiations to avoid the U.S. fiscal cliff amid concerns that the automatic tax hikes and spending cuts due to take effect in early 2013 could derail the U.S. recovery.
Market participants were also looking ahead to Wednesday’s meeting of the Organization of the Petroleum Exporting Countries. OPEC was widely expected to retain its 30 million barrel a day output target for the first six months of 2013.
Meanwhile, the euro steadied as concerns over political uncertainty in Italy eased after Italian Prime Minister Mario Monti played down fears over an imminent resignation on Monday, saying he was focused on "completing his mandate" before 2013 elections.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for January delivery were up 0.44% to trade at USD106.68 a barrel, with the spread between the Brent and crude contracts standing at USD20.90 a barrel.
On the New York Mercantile Exchange, light sweet crude futures for delivery in January traded at USD85.78 a barrel during European morning trade, up 0.26% for the day.
Crude prices were supported by expectations that the Federal Reserve will announce further stimulus measures at the conclusion of its two-day policy meeting on Wednesday, a move that would likely weaken the greenback.
The U.S. currency tends to move inversely to dollar-denominated crude, as a stronger greenback makes oil more expensive for holders of other currencies.
Investors remained wary as they awaited fresh developments in negotiations to avoid the U.S. fiscal cliff amid concerns that the automatic tax hikes and spending cuts due to take effect in early 2013 could derail the U.S. recovery.
Market participants were also looking ahead to Wednesday’s meeting of the Organization of the Petroleum Exporting Countries. OPEC was widely expected to retain its 30 million barrel a day output target for the first six months of 2013.
Meanwhile, the euro steadied as concerns over political uncertainty in Italy eased after Italian Prime Minister Mario Monti played down fears over an imminent resignation on Monday, saying he was focused on "completing his mandate" before 2013 elections.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for January delivery were up 0.44% to trade at USD106.68 a barrel, with the spread between the Brent and crude contracts standing at USD20.90 a barrel.