Oil slips to near US$106 a barrel as US Fed policy signal awaited
APBANGKOK--The price of oil fell again Tuesday, slipping toward US$106 a barrel, as traders wait for the U.S. central bank to signal when it will start scaling back its monetary stimulus.
August 21, 2013, 12:01 am TWN
Benchmark oil for October delivery was down 96 cents to US$106.14 per barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The September contract fell 36 cents to settle at US$107.10 on Monday.
Evidence that the U.S. economy is improving has led to speculation that the Fed will begin to reduce its US$85 billion a month in asset purchases as early as September. The bond-buying program was initiated as a way to help the U.S. economy recover from a tough recession following the 2008 financial crisis.
The Fed's stimulus policy has lowered interest rates and made oil and other commodities a more attractive investment by offering potentially higher returns.
Brent crude, which is used to price imported crude used by many U.S. refineries, fell 82 cents to US$109.08 a barrel for October delivery on the ICE Futures exchange in London.
In other energy futures trading:
— Heating oil fell 1.5 cents to US$3.064 per gallon.
— Wholesale gasoline fell 1.8 cents to US$2.798 a gallon.
— Natural gas was steady at US$3.463 per 1,000 cubic feet.