UPDATE 2-Brent rises above $110 as Fed vows low interest rates

Thu Jan 26, 2012 7:24am GMT
 

* Asian shares, euro firm as markets cheer Fed rate outlook

* U.S. Fed says no rate hikes until at least late 2014

* U.S. crude inventories rise as imports rebound -EIA

* Coming Up: U.S. weekly jobless claims; 1330 GMT (Updates prices)

By Manash Goswami

SINGAPORE, Jan 26 (Reuters) - Brent crude rose above $110 on Thursday, extending gains on hopes of demand growth revival after the U.S. Federal Reserve said it would keep interest rates low for much longer than previously planned, to help speed economic recovery.

Markets cheered the Fed's rate outlook and Asian shares, base metals, gold and the euro all rose as the comments helped counter concerns among investors about Greece's debt crisis worsening and hurting the global economy. For oil, added support came from worries about supply because of tensions with Iran.

Front-month Brent crude gained 84 cents to $110.65 a barrel by 0717 GMT, reversing two days of losses. U.S. crude gained 70 cents to $100.10, rising for a second day.

"Markets are supported because of concerns about Iran, while the uncertainty over Europe is making it difficult for oil to exit its current trading range," said Ken Hasegawa, a derivatives manager with brokerage Newedge in Tokyo. "For today, the Fed's comments have triggered selling in the dollar, and that has helped oil and commodities across the board to rise."   Continued...

 
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