Crude prices rose on Tuesday as U.S. retail data came in positive and the Federal Reserve described U.S. economy as "expanding moderately" in its monthly statement.
The Commerce Department said U.S. retail sales rose 1.1 percent in February after gaining 0.6 percent in January, registering the largest increase in five months.
The Fed left the record low interest rate near zero unchanged. In its monthly statement, the central bank recognized recent strength signs of U.S. economy and said that recent financial market strains had eased and the job market had improved. The positive statement lifted sentiment.
But the Fed also said U.S. economy still faced downside risks and the unemployment rate remained high. As of the highly expected monetary easing, the Fed gave few signals, which partly resulted in a stronger dollar. The dollar hit an 11-month high against the yen and a one-month peak against the euro. The dollar index, which tracks the greenback's performance against a basket of currencies, rose nearly 0.5 percent, limiting the crude gains.
Light, sweet crude for April delivery edged up 37 cents, or 0. 35 percent to settle at 106.71 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for April delivery gained 88 cents, or 0.70 percent to close at 126.22 dollars a barrel. |