Oil moved up to over $85 this morning registering a six-month high as the US Federal Reserve revealed its plan to buy debt and infuse more money into the economy.

US crude for December rose by 68¢ to stand at $85.37 a barrel at 01.07 ET while London ICE Brent for December increased by 67¢ to $87.05, reports Reuters.

The US central bank announced it would buy $75bn in Treasury bonds each month through to mid-2011, totalling $600bn.

US stocks of petrol dipped by 2.7 million barrels, while heating oil and diesel fell by 3.6 million barrels, according to the Energy Information Administration.

US crude stockpiles rose by two million barrels last week, leaving a major crude surplus compared with the same period last year.