Crude Oil Prices Post Additional Gains

Price of Crude oil futures recently followed other markets on rumors regarding the possible easing measures of the Federal Reserve and investors’ rising commitments to swap the debt of Greece.

In the NYMEX market, light sweet crude oil for delivery in April increased by 1.4% or $1.46 to reach $106.16 per barrel, a level that bounced back from its low rate of $104.35 in the earlier parts of the session. In the ICE futures exchange, Brent Crude prices traded at $124.17 per barrel, a rate which is higher by $1.85.

A wide market rally raised oil prices higher after the Wall Street Journal reports that the Federal Reserve of the United States has supplemented its possible alternatives regarding future programs on bond-buying, even if it has not yet made a decision to begin another set of “quantitative easing.”

In the meantime, investors were motivated by developments on the agreement to swap the debt of Greece, which weakened concerns of more economic problems in the euro zone which has already reduced the region’s growth.

Worries regarding the debt crisis in the euro-zone have helped limit crude oil prices in the past months, although Iranian tensions have forced them in the opposite direction with crude reaching its highest rate in nine-months, around $110 per barrel, by the time February ended.

According to analysts, the two factors keep on creating huge sways in the oil market. The report about the debt of the Fed and that of Greece trumped the data of the government that presented a continuous decline in fuel utilization in the U.S. This went with a slighter rise in crude supplies compared to the forecast of industry groups and analysts.

The weekly report of the Energy Information Administration of the United States presented distillate and gasoline demand reductions, a category that includes diesel and heating oil. The date implies that high crude oil prices are only aggravating a long-term trend of reduced consumption of domestic fuel.

The data of the EIA shows a drop of 7.8% in gasoline demand for one month compared to an earlier year. That is the largest year on year reduction since the records started in 1991.

Still, inventories of crude oil increased by around 800,000 barrels, a relief for several traders following the recent statement of the American Petroleum Institute that stockpiles increased by 4.6 million barrels during the previous week.

Front month RBOB, or reformulated gasoline blendstock, for April ended higher by 5.75 cents to reach $3.2874 per gallon. Heating oil for April finished by 3.12 cents more at a per gallon price of $3.2194.