By Virginia Harrison, MarketWatch
SYDNEY (MarketWatch) — Crude oil futures slipped in electronic trading Tuesday, ahead of this week’s central bank meetings in the U.S. and Europe, with weekly U.S. data on tap.
Crude for September delivery CLU2 +0.16% declined 16 cents, or 0.2%, to $89.62 a barrel on the New York Mercantile Exchange during Asian trading hours.
The fall extended a mild loss for crude notched in Monday’s North American session
The U.S. Federal Reserve will begin a two-day policy meeting on Tuesday, while the European Central Bank and the Bank of England meet Thursday.
Capital Economics strategist Julian Jessop said worsening U.S. economic data have boosted the likelihood the Fed will launch a third round of quantitative easing.
“Past rounds have lifted both equity and oil prices. However, a third injection of the same medicine is likely to be less effective, especially when demand for a safe haven from the crisis in Europe is keeping the dollar strong,” Jessop said.
Energy traders were also awaiting weekly U.S. supply data. The American Petroleum Institute delivers its report later Tuesday, followed by the more closely watched Energy Information Administration report on Wednesday.
Analysts polled by Platts forecast a 1.6 million barrel decline in crude oil stocks for the week ended 27 July.
Virginia Harrison is a MarketWatch reporter based in Sydney.
