Crude oil futures rallied to the highest level since May during U.S. morning hours on Thursday, as growing concerns over geopolitical risk in the Middle East boosted energy prices.
Investors now looked ahead to a speech by Federal Reserve Chairman Ben Bernanke later in the day for more clarity on the central bank’s monetary policy.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD98.19 a barrel during U.S. morning trade, climbing 1.2%.
New York-traded crude futures rose by as much as 1.6% earlier in the day to hit a session high of USD98.58 a barrel, which was the strongest level since May 4.
Oil prices spiked higher on news that protesters attempted to storm the U.S. embassy in Yemen. One protester was killed and five injured, according to Al Arabiya television.
The protest comes two days after four people were killed in a similar attack on the U.S. embassy in Libya, including the U.S. ambassador.
Meanwhile, market players eyed the outcome of the Fed’s two-day policy meeting later Thursday, amid growing speculation that the U.S. central bank may announce a third round of bond purchases, or quantitative easing, to boost sluggish growth in the world’s largest economy.
Data released earlier in the day showed that the number of individuals filing for initial jobless benefits in the week ending September 8 rose by 15,000 to a seasonally adjusted 382,000, compared to expectations for an increase of 3,000 to 370,000.
The previous week’s figure was revised up to 367,000 from a previously reported 365,000.
A separate report showed that producer prices in the U.S. rose by a seasonally adjusted 1.7% in August, compared to expectations for a 1.1% increase, after rising 0.3% in July.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery added 0.8% to trade at USD116.25 a barrel, with the spread between the Brent and crude contracts standing at USD18.06 a barrel.
London-traded Brent prices hit a session high of USD116.86 a barrel earlier, the strongest level since May 3.
Courtesy: ForexPros
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