A driver waits to pay while getting petrol for his vehicle at a gas station. (Photo : Reuters)
The U.S. Federal Reserve increased the price of oil more than 2 percent, saying the decision was done to lift the economy.
According to the Federal Reserve, the crude oil supply has been too weak the last two weeks and leaving the central banking system with no other option.
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The oil prices have increased by $1.90 to end the day at $85.81 per barrel in New York. Brent crude price, which is an important factor in deciding the price of imported oil went up by $2.26 to finish at $100.23 per barrel in London.
The U.S. has been the world's largest oil consumer, and even a small amount of increase in economic activity tends to boost oil demand. The U.S. Government further justifies that oil supplies fell last week by 4.7 million barrels as oil refineries cranked up production of gasoline and other fuels. Average oil demand also increased slightly since the last week.
On the other hand, Organization of Petroleum Exporting Countries (OPEC) reported that world oil supplies fell last month by about 100,000 barrels per day. And the major bane was caused due to production of very low amount of oil in Iran.