Oil price falls to US$93 on concerns of easing Federal stimulus measures

30-May-13

Oil prices fell to US$93 a barrel on concerns that the Federal Reserve may ease up on its stimulus measures and that the stock market rally is cooling, as per Associated Press. Benchmark oil on the Nymex for July delivery plunged to US$93.31 a barrel. Brent crude dipped to US$102.90 a barrel on the ICE Futures exchange. Improvement in the U.S. economy, particularly the housing sector, has set off speculation that the Fed will pull back on stimulus measures. The Fed has been buying $85 billion of bonds each month in an effort to keep interest rates low and encourage borrowing, lending and investing. That environment has helped make oil a more attractive investment than low-yielding options such as bonds.