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Oil Slips on Fed's Statement
Aug 10,2011 09:37CST
industry news
Source:SMM
Crude prices seesawed on Tuesday.

NEW YORK, Aug. 10 (Xinhua) -- Crude prices seesawed on Tuesday after the free fall on the previous day and ended lower as the Federal Reserve unveiled no stimulus plan to boost U.S. sluggish economy and tackle markets fears. U.S. crude price broke through the support level of 80 dollars a barrel for the first time since October.

The U.S. crude rebounded in earlier trading session for a correction reason after the 6.4-percent loss on Monday. It touched as high as 83.05 dollars a barrel. But given the fragile market confidence, investors remained cautious about the global economic situation and oil demand, causing great volatility.

After the Federal Reserve's statement released after one-day monetary policy meeting, crude prices went down quickly. The central bank decided to leave the record low interest rate unchanged until mid-2013, but didn't announce any further stimulus plan, which missed the expectation.

And Fed cut its growth forecast with U.S. economy now expected to be "somewhat slower" than previously expected, which also worsened nervousness in the markets.

In a separated report, OPEC cut its forecast for global oil demand growth for this year as a looming economic outlook points to lower consumption in developed economies.

Light, sweet crude for September delivery fell 2.01 dollars, or 2.47 percent to settle at 79.30 dollars a barrel on the New York Mercantile Exchange, after dipping to an intraday low of 75.71 dollars a barrel, the lowest level since Sept. 29, 2010.

In London, Brent crude for September delivery dropped 1.17 dollars, or 1.13 percent to settle at 102.57 dollars a barrel.

 

crude oil price; crude oil

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