Brent futures was under pressure today as traders are reluctant take positions ahead of US Federal Reserve briefing, which could provide mroe transparency on tapering of its monetary stimulus.
According to Reuters, Brent crude dropped by one cent to $108.43 a barrel, while US crude increased by 14 cents to settle at $97.36 a barrel.
The Fed’s policy-briefing is expected later in the day, which may shed light on the trimming of the Fed’s $85bn asset purchasing programme, following stronger US economic data.
Brent also fell as investors sold their stake to take profit after prices gained 1.5% in the previous session on the back of continued unrest in Libya, which reduced oil supply.
US crude prices increased after the American Petroleum Institute released data that revealed crude inventories fell by 2.5 million barrels in the week to 13 December to 367.8 million barrels, creating demand for oil.
Investors are waiting for the US Energy Information Administration (EIA) data, which is scheduled for publishing later today, to get a clearer picture of the country’s demand outlook.
Oil prices are also set rise in the near future as the volume of Japan’s customs-cleared crude oil imports rose 10.5% to 3.7 million barrels a day in November from the same month a year earlier.
Traders are also having a close eye on the tensions in South Sudan where around 400 and 500 people have been killed and up to 800 wounded in the latest violence.
Image: Brent value drops ahead of Fed decision on stimulus. Photo: courtesy of freedigitalphotos.net.