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Oil prices increased today after US Federal Reserve chairman Ben Bernanke commented that the Fed will maintain its bond buying programme as long as it is needed to.

Brent crude increased by 20 cents to $107.12 a barrel, while US crude grew by 25 cents to $93.59, reported Reuters.

Bernanke said the Fed will only begin to taper bond buying once it is assured that labour market improvements would continue.

Investors are waiting for Iran and world powers to meet for a second round of talks – scheduled to take place today – to resolve the nuclear programme that may provide an insight on whether sanctions against the nation would be lifted and, if so, when.

Sanctions against Iran have kept around 1mmbpd of oil out of the global market, and any deal could result in an influx of Iranian oil into the market, which is already being oversupplied.

The Brent prices are set to be pressurised in the near future as oil exports resumed from Libya’s western Mellitah port after protests ended, allowing a large oil field to ramp up production that could reach more than 80,000 barrels per day (bpd) by today.

The American Petroleum Institute data revealed that refinery crude runs increased by 255,000bpd and crude inventories rose by 512,000 barrels during last week.

Oil traders are waiting for US Energy Information Administration weekly data, which is scheduled to be released later today.


Image: Brent value stayed at more than $107 a barrel on stimulus hopes. Photo courtesy of freedigitalphotos.net.

Energy