NEW YORK – Crude oil prices in the United States rose for the second time last Wednesday. Due to this rise and concerns about the situation in the Middle East, the Fed has decided to act on a more economically effective stimulus.
Crude oil prices for September rose to $0.47 or 0.53% in New York making it $88.97 a barrel. In London on the other hand, prices for Brent crude oil rose to session highs of $104.71 a barrel near the market close, bringing it up to 96 cents from $104.38 dollars and extending its gains for a second day.
Brent prices fell to a session low of $102.10 after the release of oil stocks data. However, they recovered despite of worsening turmoil in the Middle East. Additionally, they have enforced the rising expectations of further monetary stimulus measures.
Prices fell earlier amid concerns over the euro zone and after data from the U.S. government showed an unexpected increase in domestic crude stocks last week, sparking fears about oil demand.
The inventory of U.S. crude rose to 2.7 million barrels last week by a sharp increase in imports, defying forecasts of a modest decline according to the government’s Energy Information Administration.
Meanwhile, sales of new single family homes in the United States suffered its worst decline last June. This is the biggest drop in the past year and it has caused prices to return to their downward trend. The trend represents a setback for the housing market recovery.
According to dealers, the weak data added to recent U.S. economic reports and reinforced expectations that the U.S. Federal Reserve has set by adopting new monetary stimulus measures to boost the economy.