Oil prices at auction on Tuesday, October 5, soared to a maximum in the last five months level. The reason for the growth of quotations of oil futures have news from Japan and the U.S., which gave participants the confidence of world markets that the central banks of these countries will continue to support the economy. Contributed to higher oil prices and weakening dollar.
Following the auction on Tuesday at the New York Mercantile Exchange futures price for WTI crude oil for November delivery rose 1.35 dollars to 82.82 dollars per barrel. At the InterContinental Exchange in London November contract for Brent Crude oil price increased by 1.56 dollars and closed at 84.84 dollars per barrel.
After a brief respite before the oil prices again rushed up. The reason for the resumption of growth was the statement by the head of the U.S. Federal Reserve Chairman Ben Bernanke, who actually announced a new round of redemption of government debt. According to B. Bernanke, took place before buying assets worth 1.7 trillion dollars has supported the country's economy, a new round will help to further improve the situation. "I can not give exact figures, but I believe that the additional purchase of securities will have a positive impact on the situation in financial markets", - said the head of the Fed.
Analysts and market participants believe that the additional repurchase of securities may be announced in November. "We view the recent statements by the Fed as a signal that the central bank has already decided to continue repurchase of assets, and we expect the FOMC will announce the repurchase program in November" - the analysts said Barclays Capital.
Positively to the dynamics of the oil market also affected the decision of the Bank of Japan lowered key interest rates to nearly zero. In an attempt to revive the economy and prevent a rapid strengthening of the yen, the main bank in the country set at the level of 0-0,1%.
Such activity of Japanese and American central banks has caused the growth of the desire of investors to risk, which favorably affected the dynamics of commodity markets (in particular the oil market), and the stock markets and put pressure on the dollar. The U.S. currency declined against the euro on 1,1%, to 1.3837 dollars / euros. U.S. dollar index, which reflects the movement of the dollar against six major currencies, lost 0.8% to $ 77.81. "It's the dollar, - the president of Schork Group Inc. Stephen Schork. - Anyone who now wants to sell raw materials, should follow the dynamics of the dollar. Between them there is a strong correlation. When a currency is rising, oil prices are falling."
Broad market index Standard & Poor "s 500 Index rose 2.09%, the index of" blue chips "Dow Jones Industrial Average - at 1.80%, high-tech NASDAQ - on 2,36%. In Europe, Germany's DAX rose 1, 33%, Britain's FTSE 100 - by 1.44%, while the French CAC-40 - on 2,25%.
