NEW YORK (AP) — Oil is rising on expectations that the Fed will announce new measures to stimulate the U.S. economy.
Benchmark crude rose $1.35 to $87.16 per barrel in New York. Brent crude, which is used to price oil produced in foreign countries, increased $1.94 to $111.08 in London.
The Federal Reserve starts a two-day meeting on Tuesday. The Fed has pumped money into the economy by buying billions of dollars in bonds. The influx of cash helped boost oil last fall.
Fed Chairman Ben Bernanke hasn't said specifically what the central bank might do this year as the U.S economy moves at a snail's pace.
Meanwhile gas pump prices fell nearly a penny on Tuesday to a national average of $3.58 for a gallon of regular.