Oil prices were on the rise today, enjoying support from yesterday’s bullish inventories data and optimism that chairman of the Federal Reserve Ben Bernanke may hint at another round of quantitative easing tomorrow. Yesterday’s inventories report from the Department of Energy suggested that demand for crude oil in the US strengthened last week as crude stockpiles in the US shed 2.2 million barrels. Analysts polled by Dow Jones expected US inventories to add 1.4 million barrels. Demand for oil has also been supported by gains in global stock markets ahead of tomorrow’s speech by chairman of the Federal Reserve Ben Bernanke to an economic symposium in Jackson Hole. At last year’s Jackson Hole event, Bernanke floated the idea of a second round of quantitative easing, which materialised in November when the Fed launched its US$600 billion stimulus programme. Traders are hoping for a repeat this time with Bernanke announcing another quantitative easing programme to support the US recovery. In the meantime, fighting in the Libyan capital Tripoli continues, but forces loyal Muammar Gaddafi appear to be losing ground at a fast pace, while the rebels are gaining momentum with the support of the NATO. The rebel army has recently captured Gaddafi’s residence in Tripoli, but the Libyan ruler managed to escape. The rapid progress made by the rebels over the past week has inspired optimism that the war may end sooner than expected, putting Libya’s exports that were estimated at around 1.7 million barrels per day back on the market. US light, sweet crude for October delivery, currently the most actively traded contract on the New York Mercantile Exchange (NYMEX), rose 42 cents to US$85.58/barrel in morning trade in New York. October Brent crude advanced 48 cents to US$110.68/barrel on the ICE Exchange this afternoon.