Oil rises as fed hopes lift markets

Oil rose on Tuesday after steep losses in the previous session, as financial markets got a lift from hopes the Federal Reserve's policy panel could act to boost the economy, Reuters reported. Crude prices shook off some early weakness after the U.S. open, rising with U.S. stocks ahead of a the start of the two-day meeting of Fed policy makers. The Federal Open Market Committee (FOMC) is expected to try to push long-term interest rates lower than they already are by tilting the U.S. central bank's portfolio toward longer-duration bonds. Brent crude traded up $1.31 to $110.45 a barrel by 12:26 p.m. EDT (1626 GMT), off early highs of $109.20. On Monday, Brent dropped more than $3 and touched a one-month intraday low of $108.87 a barrel. U.S. crude for October rose 93 cents to trade at $86.63 a barrel