Singapore: Oil prices rallied in Asia on Friday as traders celebrated a fresh round of quantitative easing announced by the US Federal Reserve, analysts said. (Agencies)
New York's main contract, light sweet crude for delivery in October surged 65 cents to USD 98.96 a barrel and Brent North Sea crude for November delivery added 56 cents to USD 116.44.
Brent crude for delivery in October had late on Thursday soared to a four-month high of USD 116.90 before closing.
Crude markets rose after traders' hopes for stimulus announcements at the end of a two-day Fed meeting on Thursday were met, IG Markets said in a report.
"Never fear, QE3 is here. At long last the markets got what they wanted as (Fed chief Ben) Bernanke finally announced another ambitious bond-buying programme he hopes will lead to a sustainable recovery in the US economy," the report stated.
"The icing on the cake announced last night was that no defined time limit was announced for QE3."
The Fed late on Thursday announced a new, open-ended USD40 billion per month bond-buying program which would remain in place until there was substantial improvement in the jobs market where 8.1 percent of Americans remain unemployed.
"QE3" -- the Fed's third "quantitative easing" program in less than three years -- would take the central bank's total monthly purchases, including ongoing programs, to USD85 billion a month, it said.
In addition, the Fed also pledged to keep its benchmark interest rate at ultra-low levels until at least mid-2015.
Singapore: Oil prices rallied in Asia on Friday as traders celebrated a fresh round of quantitative easing announced by the US Federal Reserve, analysts said.