NEW YORKâCrude-oil futures were up modestly, after paring earlier gains in broad swings that followed the Federal Reserve's announcement of a new bond-buying program.
Front-month October crude-oil futures on the New York Mercantile Exchange moved in a high-low range of more than $2 a barrel, spinning from a gain of more than $1 on the Fed news to a modest loss before returning to modest gains. Prices hit a four-month high ahead of the Fed action, at $98.58 a barrel. But they failed to reach that territory again after the news.
Recently, October crude was up 87 cents, at $97.88 a barrel.
In its Thursday announcement, which followed months of careful signaling, the Fed's policy-making committee said it would buy $40 billion each month of agency mortgage-backed securities on an open-ended basis, and said it would extend those purchases and buy additional assets if the jobs market doesn't improve.
"It's an espresso shot with the promise of continued espresso shots," said Matt Smith, an analyst at Summit Energy.
Initial broad swings reflected a "buy-the-rumor-sell-the-fact strategy. The market had high hopes and this is everything it could ask for," with interest rates holding near zero through at least mid-2015 among other measures to stimulate a risk-on appetite, Mr. Smith said.
He added prices could climb above $100 a barrel in coming days as the market digests the overall impact of the plan.
