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MTECHTIPS-Crude oil rallies on China rate cut, Bernanke testimony eyed

Crude oil futures were sharply higher during U.S. morning trade on Thursday, after China’s central bank unexpectedly lowered its benchmark interest rate to stimulate growth in the world’s second largest economy.Oil prices also climbed on the back of growing hopes for further easing measures by the Federal Reserve as well as renewed concerns over a disruption to Iranian oil supplies.On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded at USD86.45 a barrel during U.S. morning trade, jumping 1.7%.It earlier rose by as much as 1.8% to trade at USD86.56 a barrel, the highest since June 1.Oil prices accelerated gains after the People’s Bank of China unexpectedly announced that it had lowered its benchmark interest rate by 0.25% to 6.31% from 6.66% effective June 8.

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