WD: Oil rises to near $86 after Fed bond buying move
BANGKOK (AP) - Oil jumped to near $86 a barrel in Asia on today as the dollar weakened moderately after the Federal Reserve's announcement it will buy $$600 billion of Treasurys to stimulate the U.S. economy.
Benchmark crude for December delivery was up $1.04 at $85.73 a barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract rose 79 cents to close at $84.62 a barrel on Wednesday.
The announcement wasn't a surprise for markets but it underlined expectations that the dollar could weaken further and push up prices for commodities including oil. Since crude is priced in dollars, a weaker dollar makes it more attractive to buyers using foreign currencies.
