Investing.com - U.S. crude prices fell on Tuesday amid sentiments in energy markets that the Federal Reserve will begin tapering stimulus programs at its September policy meeting.
Stimulus programs such as the Fed's USD85 billion in monthly asset purchases weaken the greenback to spur recovery, which makes oil an attractive buy in dollar-denominated exchanges.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD105.67 a barrel during U.S. trading, down 1.11%.
The October contract settled down 0.40% at USD106.86 a barrel on Monday.
Despite hit-or-miss economic indicators hitting the wire in recent weeks, the economy is improving and will no longer require the level of monetary support provided by the Federal Reserve today, energy markets have concluded, which allowed oil prices to fall.
A softer-than-expected Federal Reserve output gauge failed to convince investors the Fed would continue buying USD85 billion in assets each month for the rest of the year.
The Federal Reserve Bank of Chicago’s national activity index for July came in at -0.15 from a revised -0.23 in June, though the number came in much worse than market expectations for a -0.10.
While currency traders bet the figure might steer the Fed towards keeping stimulus programs unchanged through December, energy investors viewed the data as a sign the U.S. economy will still battle headwinds even as Federal Reserve stimulus programs scale back, which sent oil prices falling further.
Elsewhere, European crude futures saw earlier support amid ongoing concerns that Egyptian unrest may swell and disrupt crude shipments in the Suez Canal or spread to oil-rich neighbors.
On the ICE Futures Exchange, Brent oil futures for October delivery were up 0.61% at USD110.57 a barrel, up USD4.90 from its U.S. counterpart.
Stimulus programs such as the Fed's USD85 billion in monthly asset purchases weaken the greenback to spur recovery, which makes oil an attractive buy in dollar-denominated exchanges.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD105.67 a barrel during U.S. trading, down 1.11%.
The October contract settled down 0.40% at USD106.86 a barrel on Monday.
Despite hit-or-miss economic indicators hitting the wire in recent weeks, the economy is improving and will no longer require the level of monetary support provided by the Federal Reserve today, energy markets have concluded, which allowed oil prices to fall.
A softer-than-expected Federal Reserve output gauge failed to convince investors the Fed would continue buying USD85 billion in assets each month for the rest of the year.
The Federal Reserve Bank of Chicago’s national activity index for July came in at -0.15 from a revised -0.23 in June, though the number came in much worse than market expectations for a -0.10.
While currency traders bet the figure might steer the Fed towards keeping stimulus programs unchanged through December, energy investors viewed the data as a sign the U.S. economy will still battle headwinds even as Federal Reserve stimulus programs scale back, which sent oil prices falling further.
Elsewhere, European crude futures saw earlier support amid ongoing concerns that Egyptian unrest may swell and disrupt crude shipments in the Suez Canal or spread to oil-rich neighbors.
On the ICE Futures Exchange, Brent oil futures for October delivery were up 0.61% at USD110.57 a barrel, up USD4.90 from its U.S. counterpart.