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NYMEX crude oil gains as dollar weakens on Bernanke remarks

Published 11/19/2013, 07:17 PM
Updated 11/19/2013, 08:02 PM

Investing.com - Crude oil prices rose in Asian trade on Wednesday as the dollar weakened against most major currencies following remarks by Federal Reserve Chairman Ben Bernanke that any tapering of the USD85 billion a month in bond purchases depends on a robust recovery.

On the New York Mercantile Exchange, light sweet crude futures for delivery in January traded at USD94.16 a barrel, up 0.29%, with an eye also on talks to begin on Wednesday between Western delegates and Iran over the latter's nuclear program and ways to close it.

An end to nuclear impasse could resume the flow of Iranian crude into global markets.

The commodity hit a session low of USD93.23 and a high of USD94.05.

Bernanke said the Federal Open Market Committee is in agreement that bond purchases have aided recovery and that even when tapering begins interest rates will likely remain near zero "well after" the FOMC's 6.5% unemployment threshold is crossed.

"The target for the federal funds rate is likely to remain near zero for a considerable time after the asset purchases end, perhaps well after the unemployment threshold is crossed and at least until the preponderance of the data supports the beginning of the removal of policy accommodation," he said, adding that economic data will be key for tapering purchases.

"If these views are supported by incoming information, the FOMC will likely begin to moderate the pace of purchases," he said.

Investors also bet that the minutes of the Fed’s October meeting due for release on Wednesday will paint a similar picture for the need to hold off on scaling back stimulus tools for now.

On the ICE Futures Exchange, Brent oil futures for January fell 1.4% to USD106.92 a barrel on Tuesday.

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