Reply #3: Oil prices rise on Fed expectations

[ozymandius]

SINGAPORE - Oil prices rose despite predictions of rising U.S. oil supplies, with traders focusing on expectations the Federal Reserve will cut interest rates later Wednesday and OPEC will not raise its output this week.

"There's possibly some anticipation over the Fed's likely rate cut," said David Moore, a commodity strategist with the Commonwealth Bank of Australia in Sydney.

The U.S. central bank cut interest rates sharply last week, and is expected to cut rates again Wednesday. Energy investors hope the moves by the Fed and a planned stimulus package from the U.S. Congress will limit damage to the economy of the world's largest oil consumer.

Light, sweet crude for March delivery added 56 cents to $92.20 a barrel in Asian electronic trading on the New York Mercantile Exchange by midafternoon in Singapore.

The contract rose 65 cents to settle at $91.64 a barrel on Tuesday.

http://news.yahoo.com/s/ap/oil_prices