Investing.com - Crude oil futures declined on Monday, amid ongoing speculation over how long the Federal Reserve will maintain the pace of its 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.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD107.03 a barrel during U.S. morning trade, down 0.25%.
Nymex oil futures traded in a range between USD106.32 a barrel, the daily low and the weakest level since August 14 and a session high of USD107.55 a barrel.
Oil futures were likely to find support at USD105.62 a barrel, the low from August 14 and resistance at USD108.16 a barrel, the high from August 16.
The September contract settled up 0.1% at USD107.29 a barrel on Friday. Nymex oil futures rose 1.1% last week.
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.
U.S. data on initial jobless claims and the housing sector later in the week will also be closely watched.
Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
Any improvement in the U.S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery added 0.35% to trade at USD110.78 a barrel, with the spread between the Brent and crude contracts standing at USD3.75 a barrel.
Brent prices rose to a session high of USD110.85 a barrel earlier in the session, the highest level since April 2.
London-traded Brent prices have been well-supported in recent sessions as ongoing violence in Egypt fuelled concerns over a disruption to supplies from the Middle East.
Fears over a disruption to Libyan oil exports also helped contribute to recent gains.
Wall Street investment bank Goldman Sachs said in a report earlier that Brent prices may rise to about USD115 a barrel in the “very near term.” Goldman raised its three-month and six-month price projections, 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.
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.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD107.03 a barrel during U.S. morning trade, down 0.25%.
Nymex oil futures traded in a range between USD106.32 a barrel, the daily low and the weakest level since August 14 and a session high of USD107.55 a barrel.
Oil futures were likely to find support at USD105.62 a barrel, the low from August 14 and resistance at USD108.16 a barrel, the high from August 16.
The September contract settled up 0.1% at USD107.29 a barrel on Friday. Nymex oil futures rose 1.1% last week.
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.
U.S. data on initial jobless claims and the housing sector later in the week will also be closely watched.
Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
Any improvement in the U.S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery added 0.35% to trade at USD110.78 a barrel, with the spread between the Brent and crude contracts standing at USD3.75 a barrel.
Brent prices rose to a session high of USD110.85 a barrel earlier in the session, the highest level since April 2.
London-traded Brent prices have been well-supported in recent sessions as ongoing violence in Egypt fuelled concerns over a disruption to supplies from the Middle East.
Fears over a disruption to Libyan oil exports also helped contribute to recent gains.
Wall Street investment bank Goldman Sachs said in a report earlier that Brent prices may rise to about USD115 a barrel in the “very near term.” Goldman raised its three-month and six-month price projections, 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.