Brent crude extended losses in late trading on Wednesday to settle below USD 103 a barrel, after minutes from the Federal Reserve sent US stock markets down and compounded earlier oil weakness stemming from a rise in US gasoline inventories.
US equities fell in choppy trading, with the Dow briefly down more than 1 percent, after Fed chief Ben Bernanke suggested the central bank was not ready to curb economic stimulus but may act if the economy keeps improving.
Brent crude futures fell USD 1.31 to settle at USD 102.60, after shedding nearly a dollar in the previous session.
After dropping more than USD 2, US crude settled down USD 1.90 at USD 94.28 a barrel, its biggest one-day loss since May 1.
“You had a couple of Fed governors talking about ending quantitative easing as early as June, and because of that, people are thinking ‘Oh, the Fed is done,’” said Mark Waggoner, president at Excel Futures in Bend, Oregon. Read more...http://tradingtipsfree.wordpress.com/2013/05/23/oil-falls-as-fed-minutes-send-us-equities-down/
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