Price of oil hovers near US$106 per barrel
By Pamela Sampson, APBANGKOK -- The price of oil hovered near US$106 a barrel Tuesday, anticipating that the U.S. Federal Reserve's two-day policy meeting will end with an announcement to scale back its unprecedented monetary stimulus.
September 18, 2013, 12:11 am TWN
Benchmark oil for October delivery was down 55 cents to US$106.04 per barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract fell US$1.62 to close at US$106.59 on Monday.
The U.S. central bank has been on a bond-buying spree that has pumped the economy full of money, pushing down interest rates and making loans more easily available. The aim of all that was to spur lending, growth and investment. Global stocks and commodities surged.
But recent data has shown the U.S. is slowly recovering from the severe downturn that followed the collapse of Lehman Brothers in 2008, convincing Fed members that it might be time to wind down the stimulus program. Oil markets have reacted negatively to the prospect.
The contract for November delivery for Brent crude, the benchmark for international crudes used by many U.S. refineries, fell 53 cents to US$109.54 a barrel in London.
In other energy futures trading in New York:
— Wholesale gasoline fell 0.5 cent to US$2.701 per gallon.
— Natural gas rose 2.1 cents to US$3.759 per 1,000 cubic feet.
— Heating oil fell 0.9 cent to US$3.055 per gallon.