Crude Gains For Second Day On Stimulus Hopes

Crude oil rose for a second day after the Federal Reserve signaled it will maintain stimulus, while investors expect a rise in US fuel supplies due to rising demand. World powers and Iran resume today talks in Geneva over Tehran’s nuclear program.

A “preponderance of data” would be needed before the central bank starts removing stimulus, said Fed Chairman Ben Bernanke; he also confirmed that the central bank will maintain its easy monetary policy as long as needed, which helped support crude prices.

- WTI crude oil futures for January is trading around $ 93.59 a barrel after rising $0.25

- Brent futures for January settlement is trading around $ 107.14 a barrel after rising $0.22

Today markets will focus on the minutes from the Federal Open Market Committee`s October meeting, which could also shed light on when the Fed will begin to trim its asset purchases. Bank of England will also release the minutes of its last meeting today.

In Geneva talks restart on Wednesday between major powers and Iran in an attempt to curb Tehran's nuclear program as a deal may involve easing sanctions that could lead to a rise in its crude exports, and could add downside pressures on prices.

- Natural gas is trading at $ 3.567 per cubic feet after rising 0.31%

- Gasoline is trading at $ 2.6383 per cubic feet after falling 0.05%

- Heating oil (diesel) is trading at $ 2.9152 a gallon after rising 0.32%

Data from industry group the American Petroleum Institute showed on Tuesday that Crude inventories rose 512,000 barrels, less than the 900,000-barrel build predicted. Gasoline inventories slid by 84,000 barrels while distillates fell 4.9 million, the API said.

Crude inventories are projected to have climbed by 1 million barrels before data from the Energy Information Administration today, yet gasoline inventories probably slid by 300,000 barrels and distillates, including heating oil and diesel, probably slid by 280,000 barrels.