Fed Comments Lift Oil Futures

New York, April 25th (TradersHuddle.com) - Oil futures got some help from the Federal Reserve as Federal Open Market Committee meeting minutes indicated the central bank plans to keep interest rates low through late 2014. On the back of those constructive comments, NYMEX-traded crude for June delivery rose 94 cents, or 0.9%, to $104.49 per barrel. In London, Brent crude for June delivery jumped $1.09 to $119.25 a barrel. The premium between almost $15 between the two contracts is little changed over the past few days. The Fed comments also pressured the U.S. dollar and the PowerShares DB US Dollar Index Bullish (NYSE: UUP) closed with a small loss on light volume. The Federal Reserve upped its 2012 GDP growth forecast, but pared its growth outlook for the next two years. The central bank stoked hopes for another round of quantitative easing by saying it stands ready to buy more bonds should economic conditions merit such action.

Oil prices moved higher despite one glum economic data point. The Commerce Department said durable goods orders tumbled 4.2% in March, the biggest decline sine January 2009. Economists expected a drop of just 1.7%. The February reading was revised lower to an increase of 1.9% from a previous reading of 2.4%.

Goldman Sachs (NYSE: GS) said crude prices will rise as demand growth outpaces production capacity and that increased output by Saudi Arabia has left the group's spare capacity at less than 1 million barrels a day, according to Bloomberg News. Saudi Arabia is the largest OPEC producer. The bank reiterated a recommendation to buy September futures for West Texas Intermediate oil, Bloomberg reported.

In earnings news, shares of oil services giant National Oilwell Varco (NYSE: NOV) slid 1.5% on volume that was nearly double the daily average after reporting a first-quarter profit of $606 million, or $1.42 per share, compared with $407 million, or 96 cents per share, a year earlier. On an adjusted basis, NOV earned $1.44 a share on revenue of $4.3 billion. Analysts expected profit of $1.40 a share on revenue of $4.31 billion.

Shares of Exxon Mobil (NYSE: XOM), the largest U.S. oil company, climbed two-thirds of a percent after the company said it would raise its quarterly dividend by 21% to 57 cents from 47 cents, bringing the annual payout to $2.28 per share. That means Exxon surpasses fellow Dow component AT&T (NYSE: T) as the top dividend payer in the U.S. in dollar terms.

Texas-based Exxon and Occidental Petroleum (NYSE: OXY), the fourth-largest U.S. oil company, report first-quarter results Thursday before the open of U.S. markets. Occidental climbed 2.1% on above average volume on Wednesday.