Market awaits outcome of US Federal Reserve policy meet: crude dip

22-Sep-10

As housing figures were revealed in USA and the market awaits outcome of the US Federal Reserve policy meet for possible new polices to boost economic growth, crude oil prices dipped. Oil futures ignored gains in European equities and a firmer euro vs dollar. Light, sweet crude for October delivery dipped to US$74.2 on the Nymex, while Brent crude on the ICE futures exchange moved up to US$79.8. Oil prices received a boost on a report that US housing starts surged 10.5% in August, to a seasonally adjusted annual rate of 598,000, better than expectations of economists calling for overall housing starts to fall by 0.2%. The Federal Open Market Committee is due to announce its interest-rate setting decision. Interest rates are expected to be left unchanged, though investors are watching for signs that the central bank may begin additional quantitative easing measures to help economic growth continue.