Oil slips after Fed hints at early end to stimulus
Global oil prices dipped today after minutes from the last policy meeting at the Federal Reserve sparked speculation of an unexpectedly early end to its quantitative easing stimulus.
January 05, 2013 / 10:24 IST
Global oil prices dipped today after minutes from the last policy meeting at the Federal Reserve sparked speculation of an unexpectedly early end to its quantitative easing stimulus. However, the market clawed back some of its earlier losses after December's US non-farm payrolls report showed modest jobs growth.
Also read: Govt yet to take call on hiking fuel prices: Moily Brent North Sea crude for February sank 92 cents to USD 111.22 per barrel in late afternoon trade in London. New York's main contract, light sweet crude for delivery in February, slid 27 cents to USD 92.65 a barrel. "Prices were ... driven down following the move by the US Federal Reserve to signal a possible end to fiscal stimulus this year, which has raised concern that the economic recovery may falter," said Inenco energy analyst Gary Hornby. Fed policymakers were divided over how long the central bank should continue asset purchases to support the economy, the minutes of their last meeting showed yesterday. The Federal Open Market Committee, at a December meeting, approved open-ended quantitative easing, but some thought the purchases should continue until the end of 2013 while others thought they should end sooner, the minutes showed. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
