Oil prices decreased today as investors sell their futures ahead of the US Fed meeting, where the central bank may take a decision on tapering its stimulus.
According to Reuters Brent crude dropped by six cents to $109.35 a barrel, while US crude was down by 11 cents to settle at $97.37 a barrel.
Investors are waiting for the key announcement by the US Federal Reserve scheduled on Wednesday this week where it may start to reduce its $85 billion-a-month bond-buying programme, which has worked to boost stock prices recently.
In the earlier session the Brent crude was supported with Libya defaulting on their promise to resume production over the weekend.
In future the crude prices are expected to rise as the global manufacturing and business activity expanded in December as euro zone businesses ended on a high with surge in new orders in 2013.
Currently the European Union governments’ pledge to suspend some sanctions against Iran as soon as the UN nuclear watchdog verifies that Tehran has curbed its atomic work following a landmark deal last month is also weighing on prices.
Investors are waiting for the US crude stockpiles data which is set to gauge the demand outlook in the country.
Traders are also closely watching the recent move by the US to expand a sanctions blacklist may block the implementation of a historic deal between Iran and world powers on Tehran’s controversial nuclear programme.
Image: Brent’s value dropped on tapering concerns. Photo: courtesy of freedigitalphotos.net.