Oil prices fall at end of previous week

27-May-13

Light, sweet crude for July delivery dropped to US$94.1 on the Nymex, while Brent for July delivery went rose to US$102.6. Oil prices saw a slight fall on concerns that the U.S. Federal Reserve will scale back its stimulus program. As per Federal Reserve Chairman the bond-buying program would remain in place for now. But he also gave hints that the U.S. central bank may wind down its bond-purchasing pace at its next few meetings if the economy does better. Numbers from USA indicate that new orders for US manufactured durable goods in April rose 3.3% to US$222.6 billion, led by strong demand for defense and non-defense aircraft. Durable goods orders in March were revised up to a 5.9% decline. The better-than-expected U.S. durable goods data sparked speculation that the Federal Reserve will draw back stimulus efforts early.