adminNEW YORK — US oil prices dropped on Tuesday amid speculation that the US Federal Reserve will reduce stimulus measures soon.As no major economic data were published on Monday, investors were looking for any hints on the Fed’s tapering plans from minutes of the latest meeting of the Federal Open Market Committee, the policy setting arm of the Fed, which was scheduled for release yesterday.
Moreover, Central bankers and policy makers will meet in Jackson Hole, Wyoming, from today to Saturday to discuss economic situation and monetary policy.
Some Fed officers have indicated that the US central bank is nearer to winding down its massive asset purchase programmes following the improving July jobs data. Total non-farm payroll employment added 162 000 in July, well below the market expectation of 175 000.
The unemployment rate edged down to 7 4 percent from 7 6 percent in June.
Traders expected that the Fed will probably begin to reduce its monthly bond purchases to $75 billion in September.
The uncertainties of Egypt still gave some support to the oil prices. Although the Arab nation is not a major oil producer, it controls the Suez Canal and the Suez-Mediterranean Pipeline, through which a large amount of crude and refined products were shipped between the Red Sea and the Mediterranean.
Light, sweet crude for September delivery lost $2.14 to settle at $104.96 a barrel on the New York Mercantile Exchange. Brent for October delivery, however, went up 25 cents to close at $110,15 a barrel. — Xinhua.
Online Reporter