It reportedly reached a four-month high of $117.48 on Thursday and appears on track to close about two percent higher for the current week.
Meanwhile, US crude prices climbed by 57 cents to $98.88 per barrel after reaching a four-month high of $99.14 in Thursday trading. It is expected to close up by three percent for the week.
The US Central Bank has announced a new stimulus program, declaring that it will purchase $40 billion of mortgage-backed debt per month until the employment outlook in the country substantially improves.
The move comes as US analysts and media reports describe it as a bid to buy more time to avoid a so-called fiscal cliff after wide-ranging budget cuts by the US government go into effect at the beginning of the next year, forcing the American economy back into another depression.
“If the fiscal cliff isn't addressed, as I've said, I don't think our tools are strong enough to offset the effects of a major fiscal shock, so we'd have to think about what to do in that contingency,” US Federal Reserve Chairman Ben Bernanke warned on Thursday while describing the severity of the persisting unemployment problem in the country as “a grave concern.”
“Fewer than half of the eight million jobs lost in the recession have been restored and at 8.1 percent, the unemployment rate is nearly unchanged since the beginning of the year and is well above normal levels.” Bernanke emphasized.
The price of Brent crude has climbed to more than $116 per barrel on hopes for a greater global demand for oil.
The price rise on Friday took place for the seventh straight session, following the announcement of a new plan by the US Federal Reserve to further stimulate the country’s ailing economy.
The price of Brent crude for November delivery climbed 56 cents to $116.44 per barrel following a 94-cent surge in the previous trading session.