World oil prices rose in Asian trade today after the US Federal Reserve decided to keep ultra-low interest rates.
World oil prices rose in Asian trade today after the US Federal Reserve decided to keep ultra-low interest rates, which lead to a weaker dollar.
New York's main futures contract, light sweet crude for June, rose 55 cents $113.31 a barrel, while Brent North Sea crude for delivery in June gained 47 cents to $125.60.
A softer greenback makes dollar-priced oil cheaper, leading to higher demand and pushing the cost of crude higher.
The Federal Reserve said last night that it would maintain its key interest rate at zero to 0.25% to support economic growth. Citing the economy's only 'moderate' recovery, the central bank also kept the door open for more economic stimulus, while saying its current $600 billion programme would be allowed to run its forecast course through June.
The market was also pressed by political developments in the oil-producing Arab world, analysts said.
Foreign pressure is mounting on Syrian President Bashar al-Assad, while hundreds of members resigned from his party and government troops kept their grip on the flashpoint town of Daraa.
In Yemen, President Ali Abdullah Saleh said he supported 'peaceful' change in line with the country's constitution as at least 15 more people were killed and more than 130 wounded yesterday with no let-up in protests.
And in Libya, the country's tribes urged strongman Moamer Gaddafi to cede power, as rebels backed by NATO air strikes said they drove the veteran leader's forces out of missile range of the lifeline port of Misrata.
