Related News
Oil slips ahead of Fed policy decision
Online Edition
The price of oil slipped 1 percent yesterday as investors prepared for an expected reduction in the US Federal Reserve's monetary stimulus.
Benchmark crude for October delivery fell US$1.17, or 1.1 percent, to close at US$105.42 a barrel on the New York Mercantile Exchange. Oil fell US$1.62 on Monday.
The central bank has been buying financial assets, such as bonds, in an attempt to push down interest rates and make loans more easily available. Global stocks and commodities surged as the new money generated by the program — currently running at US$85 billion a month — flowed through the financial system.
But recent data have shown the US economy is in better shape, which may convince Fed members that it is time to wind down the stimulus — so-called tapering — at the end of a two-day policy meeting on Wednesday.
Developments in Syria and Libya also put downward pressure on oil prices. Negotiations between Russia and the US on Syria's chemical weapons have removed the threat of an imminent US military strike. And reports have signaled the return of more Libyan crude oil to the market, after a slowdown in production and exports.
Investors will also be monitoring fresh information on US stockpiles of crude and refined products.
Energy Department data for the week ending Sept. 6 are expected to show a decline of 1.5 million barrels in crude oil stocks, while gasoline stocks are expected to remain unchanged, according to a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos.
The contract for November delivery for Brent crude, the benchmark for international crudes used by many US refineries, dropped US$1.88 to US$108.19 a barrel on the ICE Futures exchange in London.
In other energy futures trading in New York:
— Wholesale gasoline fell 6 cents to US$2.66 per gallon.
— Natural gas rose 1 cent to US$3.75 per 1,000 cubic feet.
— Heating oil declined 7 cents to US$3.00 per gallon.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
