Oil prices ease on reassurances by Fed Reserve to retain its easy money policy

19-Jul-13

New York's main contract, West Texas Intermediate (WTI) for August delivery slipped to US$106.4, while Brent North Sea crude for September dipped to US$108.5. Oil prices eased in Asian trade as the US dollar strengthened on reassurances by US Federal Reserve chief Ben Bernanke that the bank would retain its easy money policy for now. The Fed had no firm schedule for cutting back on its bond purchases, and that it would consider reducing its stimulus programme only if the economy continues to improve. This has strengthened the US dollar and that is easing demand for crude.