Date: Wednesday 11 Aug 2010
Crude oil futures fell on Tuesday as the market considered the Federal Reserve’s latest assessment of the US economy recovery
Crude for September delivery settled down $1.23 at $80.25 a barrel on the New York Mercantile Exchange, after skidding to a low of $79.20 earlier in the session.
The stronger dollar and a weak performance among US stocks weighed on oil while disappointing imports data from China also pressured demand.
The Fed held interest rates near 0%, but in its accompanying statement, it painted the gloomiest picture of the US economy for over a year.
"The pace of recovery in output and employment has slowed in recent months," the Fed said in its statement. As expected the Fed added that the recovery will also be "more modest in the near term than had been anticipated".
However oil prices came off session lows to settle above $80 a barrel as the Fed outlined plans to reinvest expiring mortgage-backed securities into longer-term US Treasurys, a move designed to keep mortgage rates low.
Gold declined but came off session lows as traders mulled the Fed’s statement. Gold for December delivery fell $4.60 to $1198.00 an ounce in New York.
The central bank’s plans to buy longer-term government debt to boost a slowing recovery helped the yellow metal trim losses.
Crude for September delivery settled down $1.23 at $80.25 a barrel on the New York Mercantile Exchange, after skidding to a low of $79.20 earlier in the session.
The stronger dollar and a weak performance among US stocks weighed on oil while disappointing imports data from China also pressured demand.
The Fed held interest rates near 0%, but in its accompanying statement, it painted the gloomiest picture of the US economy for over a year.
"The pace of recovery in output and employment has slowed in recent months," the Fed said in its statement. As expected the Fed added that the recovery will also be "more modest in the near term than had been anticipated".
However oil prices came off session lows to settle above $80 a barrel as the Fed outlined plans to reinvest expiring mortgage-backed securities into longer-term US Treasurys, a move designed to keep mortgage rates low.
Gold declined but came off session lows as traders mulled the Fed’s statement. Gold for December delivery fell $4.60 to $1198.00 an ounce in New York.
The central bank’s plans to buy longer-term government debt to boost a slowing recovery helped the yellow metal trim losses.
source:digitallook
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