Oil rises to new intraday record

Oil prices climbed to a new high, above $81 a barrel, on expectations that the U.S. Federal Reserve will cut a key interest rate later Tuesday, a measure that has the potential to bolster the economy and strengthen petroleum demand in the world’s largest energy consumer.

Light, sweet crude for October delivery rose as high as $81.24 a barrel in electronic trading on the New York Mercantile Exchange. It has since retreated to $80.73, still up 16 cents midday in Europe.


The contract settled Monday at a record close of $80.57, up $1.47.

Investors expect the Fed to cut the benchmark federal funds rate at least to 5 percent