BUSINESS

Preice of crude oil falls to US106.39 a barrel as Fed stimulus euphoria fades

09/19/2013 03:53 EDT | Updated 11/19/2013 05:12 EST
NEW YORK, N.Y. - The price of oil fell Thursday as excitement faded over the U.S. Federal Reserve's decision to keep its monetary stimulus in place.

Benchmark West Texas Intermediate crude for October delivery dropped $1.68, or 1.6 per cent, to close at US$106.39 a barrel on the New York Mercantile Exchange.

A day earlier, oil rose 2.5 per cent after the Fed unexpectedly maintained its stimulus for the U.S. economy and the U.S. Energy Department reported a bigger than expected drop in supplies of crude oil and gasoline.

In other markets, Brent crude, the benchmark for international crudes used by many U.S. refineries, slipped $1.84, or 1.7 per cent, to US$108.76 a barrel on the ICE Futures exchange in London.

In other energy futures trading on the Nymex, wholesale gasoline dropped four cents to US$2.70 a U.S. gallon (3.79 litres), heating oil slipped four cents to US$3 a gallon and natural gas gained one cent to $3.72 per 1,000 cubic feet.