U.S. oil futures inch lower ahead of Fed, supply data
Investing.com
Published Sep 16, 2014 03:56AM ET
U.S. oil futures decline ahead of Fed, weekly supply data
Investing.com - U.S. oil futures edged lower on Tuesday, as investors focused on the Federal Reserve's upcoming policy meeting as well as weekly supply data from the U.S.
On the New York Mercantile Exchange, crude oil for delivery in November fell 35 cents, or 0.39%, to trade at $91.64 a barrel during European morning hours.
Prices held in a narrow range between $91.61 and $91.96 a barrel. Futures were likely to find support at $89.76 a barrel, the low from September 15 and resistance at $92.66 a barrel, the high from September 12.
A day earlier, U.S. oil prices tacked on 62 cents, or 0.68%, to end at $91.99 a barrel.
Investors shifted their focus to the Fed's upcoming policy meeting, due to begin later Tuesday, amid speculation the U.S. central bank could adopt more hawkish language.
The dollar remained well bid as the central bank was expected to cut its asset purchase program by another $10 billion, which would keep it on track for winding up the program in October, and to start raising interest rates sometime in mid-2015.
Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.
Market players also awaited the release of fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of 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 1.8 million barrels in the week ended September 12.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for November delivery shed 31 cents, or 0.32%, to hit $97.57 a barrel during early European trade on Tuesday.
London-traded Brent prices lost 8 cents, or 0.08%, on Monday to settle at $97.88 amid concerns weakening global economic growth will reduce demand for the commodity.
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Written By: Investing.com
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