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Oil Up On Weak Dollar

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Oil prices rose on the back of a weaker dollar after the U.S. Federal Reserve remarked that it will be keeping low interest rates for longer than planned, although an increase in weekly jobless claims capped gains.

The rate outlook of the Fed was cheered by markets. Base metals, euro, and gold all rose as the comments helped counter concerns among investors about debt crisis of Greece worsening and hurting the global economy.

Weekly jobless claims in the world's top oil consumer, the United States, rose to 377,000, above a consensus forecast for 370,000.

Front-month Brent crude futures were $1.80 higher at $111.61 a barrel by 1454 GMT and U.S. crude futures were $1.72 firmer $101.12. The dollar index DXY was down 0.48 percent.

"An easy money policy should ultimately result in helping the U.S. economy to continue to recover and start a more accelerated growth pattern," Dominick Chirichella of New York's Energy Management Institute wrote in a note.

"The passage of EU sanctions against Iranian crude oil leaves the displaced flows to find a market in Asia before the sanctions take effect in July," analysts at Barclays Capital said in a report. "The mathematics of the potential trades seems to be very delicately balanced, leaving a possibility that not all the displaced crude will find a market easily."

Uncertainty in the market

Uncertainty in the market would make thousands bankrupt ;)

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