WTI oil prices open Thursday’s session flat around $85 a barrel as traders and investors await a speech by US Fed chief Ben Bernanke tomorrow which may involve new stimulus measures for the US economy, affecting both stock markets and commodity prices.
Latest WTI Oil Price
US Light crude oil futures for October 2011 delivery was trading at $85.47 a barrel, 07.25 GMT this morning in electronic trading on the NYMEX. The US contract fell 29 cents to close yesterday’s trading session at $85.16 a barrel.
Markets Await Bernanke
Speculation that Bernanke may announce a new set of monetary stimulus measures has helped boost stock markets so far this week.
Bernanke’s speech, entitled “Near and Long-Term Prospects for the US Economy” is part of an annual symposium hosted by the Kansas City Fed since 1982 beside the Teton mountains.
“We are seeing a lot of trepidation ahead of the Federal Reserve speech on Friday. Markets have really held back their gains today.” said Matt Smith, an analyst with Summit Energy.
“Expectations ahead of the meeting were quite high at the beginning of this week for some kind of firm policy statement, but I think that’s very unlikely.” said John Kattar, chief investment officer at Eastern Investment Advisors.
“I don’t think he will do more than outline future policy options. Bernanke has tended to be preemptive and shown some capacity to pull a rabbit out of the hat. There are some people who may feel he is still a magician. That is a minority.” said Alan Ruskin, global head of foreign exchange strategy at Deutsche Bank Securities.
