Singapore: Oil prices were higher in early Asian trade today after the US Federal Reserve cut key interest rates in a surprise move amid deepening worries of a likely US recession, dealers said.
In morning trade, New York’s main contract, light sweet crude for delivery in March, was four cents up at $89.25 a barrel.
The February contract, which expired yesterday, had closed 72 cents lower at $89.85 in New York overnight.
Brent North Sea crude for March delivery was seven cents higher at $88.52 a barrel.
In an unexpected move yesterday, the Federal Reserve slashed its key interest rate by an unprecedented 75 basis points to 3.50% in an effort to offset a housing downturn and credit crisis that threaten US economic growth.