US oil prices stable after spike

NEW YORK—US oil prices were stable Thursday after hitting levels not seen since September 2008, as traders weighed a weaker dollar and slower US growth.

The day ended with New York’s main contract, light sweet crude for June delivery, up just 10 cents to $112.86 a barrel, after nearing the $114 mark earlier in the day.

London’s Brent North Sea crude for delivery in June lost 11 cents to $125.02 a barrel.

Traders weighed first-quarter US economic growth data, published earlier Thursday, showing activity in the world’s largest economy had slowed.

Growth crawled to an annual pace of 1.8 percent in the January-March quarter, compared with 3.1 percent in the fourth quarter of 2010, the Commerce Department said in its first estimate for the period.

The figures were “not very encouraging,” according to Matt Smith of Summit Energy.

Crude oil prices had risen on Wednesday on the back of the Federal Reserve’s decision to continue pursuing an exceptionally supportive monetary policy.

The Fed announced that it would maintain its key interest rate at an ultra-low zero to 0.25 percent to support economic growth.

Citing the economy’s only “moderate” recovery, the central bank also kept the door open for more economic stimulus, while saying its current $600 billion program would be allowed to run its forecast course through June.

The Fed’s easy monetary policy weighed on the dollar, helping to support oil prices. A weaker US unit makes oil and other dollar-priced commodities more attractive to buyers using stronger currencies.

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