Oil prices steady ahead of U.S. Federal Reserve policy meeting

PanARMENIAN.Net - The price of U.S. benchmark oil rose slightly Tuesday, June 18, a day after briefly touching a nine-month high, as traders awaited the start of a Federal Reserve policy meeting, according to The Associated Press.

Benchmark oil for July delivery rose 5 cents to $97.82 per barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. On Monday, the contract fell slightly after it climbed to $98.74, its highest level since mid-September, as stock and commodity markets wait for Fed policymakers to meet this week.

To help support the U.S. economic recovery, the Fed buys $85 billion in bonds every month, which pumps money into the financial system and makes loans more available and affordable by lowering interest rates.

The Fed concludes a two-day policy meeting Wednesday with a news conference by Fed chairman Ben Bernanke. Investors want to know if the Fed will stay the course — or pull back on its loose-money policies in light of recent data suggesting an improving U.S. economy. Markets have gyrated sharply in recent weeks over the uncertainty.