AFP reported that oil prices rose on news that the US Federal Reserve would keep interest rates low for more than 2 years to boost growth in the world's biggest economy. Analysts said that New York's main contract, West Texas Intermediate crude for delivery in March gained 78 cents to USD 100.18 per barrel. Brent North Sea crude for March jumped USD 1.23 to USD 111.04 in London midday deals. Mr Jack Pollard an analyst at Sucden Financial Research said that "Yesterday's Fed announcement underpins crude oil prices in two main ways. Firstly, the long term accommodative policy should help support economic growth and accordingly energy demand from the world's largest crude user. Secondly because the decision has pressured the dollar." A weaker US currency makes dollar denominated crude cheaper for buyers holding other currencies, thereby boosting demand. The US central bank's policy setting Federal Open Market Committee announced it would keep its highly accommodative monetary policy to support the fragile economic recovery. The FOMC said that its key interest rate would remain near zero through at least 2014, extending a prior timeframe of mid 2013. The bullish Fed news overshadowed lingering worries over a potential Greek debt default and earlier US government data showing weaker energy demand. Oil traders were also following the latest news regarding Iran after the European Union this week imposed a ban on the Islamic Republic's oil and of assets owned by its central bank. Mr Mahmoud Ahmadinejad president of Iran insisted that his country would not be hurt by newly imposed Western sanctions. Once our trade with Europe was around 90% but now it has reached to 10% and we are not seeking this 10% experience has shown that the Iranian nation will not be hurt. For the past 30 years the Americans have not been buying oil from us. Our central bank has no relations with you.

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