The Canadian Press - ONLINE EDITION

Oil falls as Fed's brighter outlook signals a possible unwinding of stimulus

  • Print

NEW YORK, N.Y. - The price of oil fell slightly Wednesday as the U.S. Federal Reserve indicated it's closer to easing up on economy boosting measures that have been a boon for commodities.

Oil swung in a range of about $1 after the Fed delivered a mixed message: the central bank said it would continue buying bonds at a pace of $85 billion a month, which helps keep interest rates at low levels.

But chairman Ben Bernanke also offered a more optimistic outlook for the U.S. economy and said the Fed could start scaling back on the bond purchases later this year if conditions continue to improve.

Timothy Duy, a University of Oregon economist who tracks the Fed, called the statement "an open door for scaling back asset purchases as early as September."

Benchmark West Texas Intermediate crude for July delivery dropped 20 cents to finish at US$98.24 a barrel on the New York Mercantile Exchange.

Meanwhile, the U.S. inventory of crude oil has grown by 300,000 barrels, or 0.1 per cent. At 394.1 million barrels, supplies are 1.8 per cent above year-ago levels, the Energy Information Administration said in its weekly report. Analysts had expected supplies to drop by one million barrels.

Brent crude, a benchmark for many international oil varieties, rose 10 cents to end at US$106.12 a barrel on the ICE Futures exchange in London.

In other energy futures trading on the Nymex, wholesale gasoline rose one cent to finish at US$2.89 a U.S. gallon (3.79 litres), heating oil rose one cent to end at US$2.97 a gallon and natural gas gained six cents to finish at $3.96 per 1,000 cubic feet.

(TSX:ECA), (TSX:IMO), (TSX:SU), (TSX:HSE), (NYSE:BP), (NYSE:COP), (NYSE:XOM), (NYSE:CVX), (TSX:CNQ), (TSX:TLM), (TSX:COS.UN), (TSX:CVE)

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

ALS Ice Bucket Weather Challenge by Doug Speirs

View more like this

Photo Store Gallery

  • Marc Gallant/Winnipeg Free Press. Local/Standup- BABY BISON. Fort Whyte Centre's newest mother gently nudges her 50 pound, female bull calf awake. Calf born yesterday. 25 now in herd. Four more calfs are expected over the next four weeks. It is the bison's second calf. June 7, 2002.
  • Goose sits in high grass near Marion Friday afternoon for cover -See Bryksa 30 Day goose challenge- Day 18 - May 25, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

What do you think of Prime Minister Stephen Harper’s comment that Tina Fontaine’s slaying was a crime, and not part of a larger sociological problem?

View Results

View Related Story

Ads by Google