LONDON: Brent oil futures fell towards $104 per barrel yesterday driven by concerns that the US Federal Reserve might scale back its quantitative easing programme, which could damage fragile demand.
Comments by Fed officials and upbeat US data last week fuelled speculation that the central bank might start to reduce its bond purchases this year.
Investors are focusing on the release of minutes of the Fed’s last meeting and testimony by Fed Chairman Ben Bernanke to Congress, both scheduled for today. “The market is waiting to see what is going to happen with monetary policy and at what speed it will change,” said Bjarne Schieldrop, head of commodity research at SEB in Oslo.
Front-month Brent futures fell 33 cents to $104.47 per barrel by 1333 GMT, after touching $105.31 in the previous session, the highest since May 7.
US crude was down 4 cents to $96.67 but could gain support from inventory data. Analysts expect a drop of 400,000 barrels in U.S. crude stockpiles due to higher refinery activity and lower imports.
Reuters
