Crude oil prices rose after the Federal Reserve announced it plans to keep United States interest rates near a record low through 2014 and a report showed durable goods orders in the world’s biggest crude-consuming country increased.

Crude oil for March delivery rose $1.29, or 1.3 per cent, to $100.69 a barrel at 10:26 a.m. on the New York Mercantile Exchange. Prices touched $101.39, the highest level since January 19. Futures are up 15 per cent in the past year.

Brent oil for March settlement climbed $1.53, or 1.4 per cent, to $111.34 a barrel on the ICE Futures Europe exchange in London.

Futures advanced above $100 a barrel as Fed Chairman Ben S. Bernanke said on Wednesday that policy makers are considering more bond purchases to boost growth after extending the pledge to maintain interest rates. Bookings for goods meant to last at least three years climbed three per cent in December, data from the Commerce Department showed.

“Between Bernanke and the durable goods orders, people are starting to feel a little bullish about the economy,” said Michael Lynch, president of Strategic Energy and Economic Research in Winchester, Massachusetts. “The durable goods number points to increasing economic growth and fuel demand.”

The Federal Open Market Committee had previously said the benchmark rate would stay low through mid-2013. Fed officials also lowered their projections for economic expansion and inflation for this year and next.

Oil in New York has traded in a $6.34 range for the past month with futures staying between $97.40 and $103.74.

“Earlier this week we wanted to test the bottom-end of the range,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut.

“After Bernanke made his statement on Wednesday, the shorts got cold feet. Now we’re back in the middle of the range and are looking for a catalyst to launch another assault at the upper end.”

U.S. durable goods orders were forecast to climb two per cent last month, based on the median of estimates by 78 economists surveyed by Bloomberg News. Another report showed jobless claims increased last week. New home sales last month probably rose to the highest level in a year, another report may show.

The index of U.S. leading indicators rose in December for a third month, indicating the economy will keep growing in early 2012. The Conference Board’s gauge of the outlook for the next three to six months increased 0.4 per cent after climbing 0.2 per cent in November, the New York-based group said.

The median forecast of 44 economists surveyed by Bloomberg News called for a gain of 0.7 per cent.

“Negative economic sentiment in the U.S. has receded,” McGillian said.

Talks on a debt swap to avert a Greek default resumed, as international policy makers argue over the mounting cost of the rescue. European finance ministers have insisted bondholders take bigger losses on their Greek debt.

Oil prices have shifted over the last two years on the latest developments in the European debt crisis and the projected impact it would have on energy demand. The crisis that began in Greece has spread to Ireland, Portugal, Italy and Spain and threatens economic growth in the region.