The price of oil lurched upwards on Tuesday despite the fear that the Chinese economic recovery may not be everything investors wished for. Driving the upward direction of oil is the hope of investors that the US Federal Reserve will implement new strategies which will help give the US economy a bit of a jump start.
The January delivery price for Benchmark crude was $85.80 per barrel, representing a 23 cent rise during late afternoon Bangkok time electronic trading on the New York Mercantile Exchange. The same contract had fallen only the day before by 37 cents on the Nymex, closing at $85.56.
Brent crude, which is used more to establish the price of international types of oil, was also up. On the ICE futures exchange in London the price was $107.66, an increase of 33 cents from the previous day’s closing price.
The Federal Reserve began a two day policy meeting on Tuesday. The results of the meeting are widely believed to be the purchase of more long-term Treasury bonds in an effort to replace the program which expires with the coming new year.