Oil prices up after US Fed meeting

SINGAPORE: Oil prices rose in Asian trade Thursday as the US Federal Reserve's view that the economy was growing modestly eased fears it would soon wind down its huge stimulus programme.

Investors were also cheered by better-than-expected US growth figures for the April-June period, fuelling hopes for a pick-up in energy demand.

New York's main contract, West Texas Intermediate for delivery in September, climbed 52 cents to $105.55 a barrel in afternoon trade, and Brent North Sea crude for September rose 24 cents to $107.94.

After a two-day meeting, the Fed's policy committee said growth was at a "modest" pace and pledged to keep its $85 billion-a-month bond-buying programme in place for now.

"Oil prices remain supported by the US Fed's clear signal regarding retaining monetary stimulus for now," David Lennox, resource analyst at Fat Prophets in Sydney told.

Also Wednesday, Washington said gross domestic product grew 1.7 percent in April-June, above the 1.1 percent pace expected by analysts -- although it also included a steep downgrade in growth for the previous three months to 1.1 percent from 1.8 percent.