London: Brent crude oil slipped below $108 a barrel on Wednesday as the dollar gained ahead of eagerly awaited word from Federal Reserve chairman Ben Bernanke on the US central bank’s plan to roll back its monetary stimulus.
Oil, particularly the US benchmark, is also under pressure after an industry report showed a build-up in gasoline stocks in top consumer the United States at the peak of the driving season.
Brent crude slipped 37 cents to $107.77 a barrel by 0942 GMT. US oil fell 56 cents to $105.44.
“Commodity prices are under pressure ahead of Bernanke. There’s some negative impetus from external factors such as the somewhat stronger dollar,” said Carsten Fritsch of Commerzbank.
“And it’s normal for there to be some profit-taking with oil at these higher levels.
A stronger dollar makes oil more expensive, which dampens demand for fuel.
Bernanke is set to testify to Congress on Wednesday and Thursday, and may clarify when the central bank will roll back its $85 billion a month bond-buying programme.
His comments last week that accommodative policy would be needed for the foreseeable future surprised investors, who had bet on a scale-back as early as September.
