Investing.com - Crude oil futures fell to a one-week low on Tuesday, as uncertainty over whether the Federal Reserve will soon begin tapering its bong-buying program continued to weigh.
Investors also looked ahead to the release of key U.S. weekly supply data to gauge the strength of oil demand from the world’s largest consumer.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD105.78 a barrel during European morning trade, down 1%.
Nymex oil futures fell by as much as 1.25% earlier in the session to hit a daily low of USD105.53 a barrel, the weakest level since August 12.
The October contract settled 0.4% lower at USD106.86 a barrel on Monday.
Oil futures were likely to find near-term support at USD105.06 a barrel, the low from August 12 and resistance at USD107.53 a barrel, Monday’s high.
Investors remained cautious ahead of the minutes of the Fed's July meeting, due out on Wednesday, for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Oil traders also looked ahead to the release of fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles fell by 1.4 million barrels.
Market players also remained focused on the turmoil in Egypt, amid concerns that the escalating tensions would lead to the closure of the Suez Canal, which transports approximately 2 million barrels of crude oil a day from northern Africa to the U.S.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery shed 0.65% to trade at USD109.17 a barrel, with the spread between the Brent and crude contracts standing at USD3.39 a barrel.
Brent prices hit USD110.98 a barrel on Monday, the highest level since April 2.
London-traded Brent prices have been well-supported in recent sessions amid fears over a disruption to Libyan oil exports.
Wall Street investment bank Goldman Sachs said in a report Monday that Brent prices could climb to USD115 a barrel in the “very near term”, citing supply disruptions in Libya and Iraq.
Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2012.
Investors also looked ahead to the release of key U.S. weekly supply data to gauge the strength of oil demand from the world’s largest consumer.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD105.78 a barrel during European morning trade, down 1%.
Nymex oil futures fell by as much as 1.25% earlier in the session to hit a daily low of USD105.53 a barrel, the weakest level since August 12.
The October contract settled 0.4% lower at USD106.86 a barrel on Monday.
Oil futures were likely to find near-term support at USD105.06 a barrel, the low from August 12 and resistance at USD107.53 a barrel, Monday’s high.
Investors remained cautious ahead of the minutes of the Fed's July meeting, due out on Wednesday, for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Oil traders also looked ahead to the release of fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles fell by 1.4 million barrels.
Market players also remained focused on the turmoil in Egypt, amid concerns that the escalating tensions would lead to the closure of the Suez Canal, which transports approximately 2 million barrels of crude oil a day from northern Africa to the U.S.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery shed 0.65% to trade at USD109.17 a barrel, with the spread between the Brent and crude contracts standing at USD3.39 a barrel.
Brent prices hit USD110.98 a barrel on Monday, the highest level since April 2.
London-traded Brent prices have been well-supported in recent sessions amid fears over a disruption to Libyan oil exports.
Wall Street investment bank Goldman Sachs said in a report Monday that Brent prices could climb to USD115 a barrel in the “very near term”, citing supply disruptions in Libya and Iraq.
Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2012.