Here are Tuesday’s oil news updates:
Fed Statements Strengthen Oil Futures: Federal Reserve Chairman Ben Bernanke made public remarks on Monday asserting the central bank will maintain deflated interest rates, Reuters reports. While low interest rates have been detrimental to the value of the dollar, perpetuating low interest rates will have an inverse effect on the value of crude futures — as oil stocks like Royal Dutch Shell (NYSE:RDS.B, +2.3%) and Exxon Mobil (NYSE:XOM, +1.7%) collectively rose Monday on affirmation that interest rates will be kept at a minimum. Bernanke maintains that low interest rates will be key to an economic turnaround. Whether they’ll foster a recovery, affirmation of their upkeep has stoked oil investor optimism.
Gas Prices Could Exceed 2011 Peak: Climbing on mounting unease around Middle East diplomatic tension, the national average for a gallon of gasoline is inching close to last year’s peak — and might exceed it. Gasoline reached a nationwide average of $3.93 Monday, with little indication it may cease its ascent. According to a recent Associated Press report, the national average peaked early last May at $3.98 per gallon, only thirteen cents shy of the record high of $4.11 set in July 2008. Since the price of gasoline is anchored to the standing value of crude, diplomatic antagonism between NATO member countries and Iran — OPEC’s third largest crude exporter — could propel the national average to a new record high.
Chevron to Keep Brazil Foothold: Despite ongoing concern regarding environmental contamination following last year’s Transocean (NYSE:RIG) oil leak, Brazil Energy Minister Edison Lobao has publicly stated that Chevron (NYSE:CVX) has not committed acts meriting legal expulsion — and will be allowed to retain Brazil operations. International Business Times contributor Pierre Bertrand reports that despite 16 Chevron executives being held on bail and barred from leaving Brazil, the fallout from the incident does not provide warrant to expel the company altogether.
Adam Patterson is an Assistant Editor of InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities. For more oil news, check out our previous Daily Oil News stories.