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Stimulus Speculations Lead to Gains of Crude

May 17, 2013 at 0:27 by Vladimir Vyun

Futures for Brent grade of crude oil advanced today on speculations that the Federal Reserve’s quantitative easing will persist. WTI crude was a little lower today.

There were talks recently that the Fed does not have reasons to keep monetary easing as macroeconomic data suggests that the US economy is on a path of stable recovery. Yet this week’s reports were rather bad, making it less likely for the central bank to reduce its stimulating measures. Such outlook is positive for crude oil.

The Consumer Price Index fell 0.4 percent in April on a seasonally adjusted basis. Unemployment claims climbed from 328,000 to 360,000 last week, more than analysts have anticipated. What looked even worse was the unexpected drop of the Philadelphia Fed Manufacturing Index from 1.3 in April to -5.2 in May.

June futures for delivery of Brent crude oil rose $0.12 (0.12 percent) to $103.80 per barrel as of 00:22 GMT on ICE today. WTI crude slipped $0.1 (0.11 percent) to $95.06 on NYMEX.

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