Oil prices rise as banking turmoil fades before Fed decision
BNN Bloomberg
Oil advanced for a second day, with investors watching for any signs of fresh banking-industry trouble ahead of the Federal Reserve's rate meeting this week.
West Texas Intermediate rose above US$68 a barrel after swinging in a US$3-plus range on Monday. Traders are starting to return to risk markets after authorities stepped in to shore up the financial system. US officials are also studying ways they might temporarily expand protection for all deposits.
The banking crisis will eventually be bullish for oil because it will hit supply harder than demand, according to Jeff Currie, Goldman Sachs Group Inc.'s global head of commodities. There's no sign yet that contagion is weakening physical demand for raw materials, he said Tuesday at the FT Commodities Global Summit in Lausanne, Switzerland.
