Oil Rises to Four-Month High on Mideast Unrest, Fed Meeting [View all]
Oil climbed to a four-month high on concern that protests in the Middle East and North Africa may curb supply and on speculation that the Federal Reserve will unveil more stimulus measures.
Futures rose as much as 1.6 percent as protesters tried to storm the U.S. embassy in Sana’a, Yemen. An attack Sept. 11 killed the American ambassador to Libya, Chris Stevens, and three colleagues. There were clashes at the Cairo embassy the same day. The Federal Open Market Committee may announce a third round of bond purchases known as quantitative easing today.
“The events out of Libya and Egypt add to general geopolitical tension that is currently prevailing in the Middle East,” said Harry Tchilinguirian, the head of commodity-markets Strategy at BNP Paribas SA in London. “The market is in the wait-and-see mode for the Fed decision that will be announced later today and the consensus is that some form of quantitative easing is going to be announced.”
Crude oil for October delivery advanced $1.19, or 1.2 percent, to $98.20 a barrel at 9:39 a.m. on the New York Mercantile Exchange. The contract reached $98.58, the highest level since May 4. Futures have gained 26 percent since June 28.