Oil jumps after Fed cuts US interest rates, then pares gains

NEW YORK: Oil prices rose on Tuesday but remained below session highs reached after the U.S. Federal Reserve cut interest rates in an emergency move designed to shield the world’s largest economy from the impact of the coronavirus.

The central bank’s statement said it was cutting rates by a half percentage point to a target range of 1.00% to 1.25%. Crude futures spiked, then pared gains as traders viewed the Fed’s move as a signal that the situation was more serious than many had thought, said Bob Yawger, director of energy futures at Mizuho in New York.