Investing.com - " Crude oil futures traded near a four-month low
on Thursday, amid expectations that a reduction in U.S. monetary
stimulus is still possible by the end of the year.
On the New York Mercantile Exchange, light sweet crude futures for
delivery in December traded at USD96.64 a barrel during European
morning trade, down 0.15%.
New York-traded oil futures traded in a range between USD96.38 a
barrel, the daily low and a session high of USD96.76 a barrel.
The December contract ended down 1.46% on Wednesday to settle at
USD96.77 a barrel, the lowest closing price since July 1.
Oil futures were likely to find support at USD95.95 a barrel, the
low from October 24 and resistance at USD98.80 a barrel, the high
from October 28.
The Fed said on Wednesday that it would keep buying USD85 billion a
month in mortgage and Treasury securities, as widely expected.
Fed officials stuck to the view that the economy is expanding "at a
moderate pace" and said downside risks were diminishing, sparking
speculation the central bank could start tapering stimulus at its
Later in the day, the U.S. was to release data on initial jobless
claims and a report on manufacturing activity in the Chicago
Oil traders have closely been looking out for U.S. data reports
recently to gauge if they will strengthen or weaken the case for
the Fed to reduce its bond purchases.
Traders remained concerned about rising U.S. inventories and weaker
demand in the world's largest oil consumer.
The U.S. Energy Information Administration said in its weekly
report on Wednesday that U.S. crude oil inventories rose by 4.1
million barrels last week to 383.9 million barrels, the highest
level since June.
U.S. crude prices have been on a downward trend in recent weeks
amid concerns the recent U.S. government shutdown created a drag on
economic growth and eroded demand in the world's largest oil
Elsewhere, on the ICE Futures Exchange, Brent oil futures for
December delivery dipped 0.45% to trade at USD109.38 a barrel, with
the spread between the Brent and crude contracts standing at
USD12.74 a barrel, the widest gap since April.
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