The price of Oil rose after the Federal Reserve’s Chairman Ben Bernanke stated that growth in the economy will resume and that the central bank had the tools nessecary to stimulate the economy in the U.S.
Oil price fell by more than $2 a barrel during morning trading before Ben Bernanke took center stage at a conference in Jackson Hole in Wyoming. The Chairman of The Federal Reserve did not offer any new stimulus package to boost the economy like many economists had speculated he might but he did hint that Congress may need to step in to stimulate hiring and growth. That lead many to believe that there may be a new round of bond-buying in order to increase the money supply in the economy.
Bernanke’s speech has lead many to now look at the government for help as many believe the central bank has done all it can to aid an economy but monetary policy does not fix underlying problems such as high unemployment and the huge debt which burdens the U.S. government. Economists now say its time for the government to pull there own weight in order to get the economy back on its feet.
Oil prices may fall again next week as Libyan rebels take control of the country and begin the rebuilding process that will put it oil exportation back online.
WTI Crude advanced 0.25 percent to close at $85.51 per barrel.
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