Oil prices slipped again today after the US Federal Reserve showed signs of concern over the side effects of its stimulus programme, and on the possibility of more budget battles in the coming months.
Brent crude fell to $110.94 a barrel, while US crude dropped $1.04 to $91.88, reported Reuters.
Rising concerns over the proposed discussion next month in Washington to deal with the debt ceiling, and the Federal Reserve’s hesitation over increasing the central bank’s $2.9 trillion balance sheet, added to oil price woes.
Analysts expect the oil markets to rise if the US data on jobs and oil inventory, which will be released today, indicates that the world’s largest economy and oil consumer is bouncing back to recovery.
Data issued by the American Petroleum Institute on Thursday showed that a drop of 12 million barrels in crude inventories was recorded in the week to 28 December.
Investors are also awaiting the US government’s announcement of non-farm payroll data, which is an important economic indicator that could provide further insights into the state of the economy as 2012 ended.
Oil product prices, however, may be affected when Motiva Enterprises resumes its new 325,000 barrel-per-day (bpd) crude distillation unit at its Port Arthur, Texas, refinery, leading to a rise in supply.