West Texas Intermediate crude futures fell after the Fed chairman hinted the central bank could cut back its bond purchases later this year and end by 2014 depending on the economy growth.
The West Texas Intermediate crude slid as much as 1.74%, standing at $96.78 per barrel as of 6:10am GMT, at the same time, the Brent crude oil fell dropped 1.54%, trading at $104.50 per barrel.
“We’re still some distance from that happening. Scale-backs in the asset purchasing program will only happen if the economic data gets better, while interest rate hikes are still far in the future,” Bernanke said at the press conference , after the two-day policy meeting .
The employment rate is predicted to rise between 7.2% and 7.3% by the end of the year, according to the latest forecast.
The U.S economy is expected to grow between 2.3% and 2.6% as well as next year’s GDP is expected to enlarge from 3% to 3.5%, according to statements released from the central bank.
Crude inventories data received by the API lost by 669,000 barrels to 48.6 million during the week ended June 14, the lowest since December.
Gasoline inventories rose by 183,000 barrels during the week ended June 14, according to the EIA. Reports from the Energy Information Administration (EIA), stockpiles climbed by 0.313 million barrels in the previous week.
China the second-largest oil consumers, are accounting for 11% of the global demand, while the U.S is the biggest user with 21 %, according to data released from the BP Plc.
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