Oil tops $50 on belief that Fed's actions will stimulate economy

Updated

There's nothing like accommodative monetary policy to gladden the hearts of the oil market's bulls. Oil raced six percent higher Thursday, gaining $3.12 to $51.26 per barrel on the belief the U.S. Federal Reserve's additional quantitative easing Wednesday will provide the boost needed to jump start the U.S. economy from its pronounced recession.

Energy Trader Paul Schmidt says the jump start analogy is apt. "Think of the U.S. economy as a car that's been immobilized with a weak battery, and the Fed as a tow truck with great charging power. The Fed is providing the boost we need to get the economy running again," Schmidt said. "And that's bullish for oil." Schmidt added that he was long with an oil trade, with a monthly contract.

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