By Cassie Werber
LONDON--Oil futures were trading mixed Thursday in London, with uncertainty over whether the U.S. Federal Reserve may begin to withdraw the stimulus that has kept the country's economy buoyant and supported oil prices.
"The improving U.S. fiscal picture...[has] re-ignited fears of a potential tapering of stimulus before the end of year," wrote brokerage PVM in a note to clients.
The U.S. is also hitting 25-year production highs, according to the International Energy Agency, which said output in September exceeded 7.7 million barrels per day for the first time since May 1989.
Brent crude for January delivery fell 39 cents to $109.12 a barrel on ICE Futures Europe. U.S. crude-oil futures were up 7 cents a barrel on at $97.51 the New York Mercantile Exchange.
The market is awaiting the next Federal Reserve meeting on Dec. 17-18 to see where the Fed will go with tapering of its stimulus program.
Michael Poulsen, analyst at Global Risk Management, wrote that a decisive move by the Fed is unlikely this month.
"We...remain skeptical that it will start already next week," he wrote in a note to clients. There could be some volatility around the publishing of jobless claims and retail sales later Thursday, he said.
Recently the ICE's gasoil contract for December delivery was up $1.50 at $933.50 a metric ton, while Nymex gasoline for January delivery was up 5 points at $2.6616 a gallon.
