The price of crude oil ebbed and flowed as a government report indicated stockpiles of the commodity decreased and all eyes focused on an announcement following the U.S. Federal Reserve's final meeting of 2010, Bloomberg reports.
The U.S. Energy Department is readying a report for release on Wednesday that will reveal oil supplies fell 2.6 million barrels during the first week in December. On December 7 prices rose to $90.76 per barrel, marking its highest value since October 2008.
"Investors are biding their time before today's Fed meeting and tomorrow's DOE report," Peter Beutel, president of Cameron Hanover Inc., a trading-advisory company in New Canaan, Connecticut, told Bloomberg. "They will want to see if either will be enough to take out last Tuesday’s highs."
U.S. Federal Reserve policymakers are conducting their final meeting on 2010 on Tuesday. In early November, the central bank announced intentions to purchase $600 billion worth of assets to spur the sluggish economy, confront inflation and address the unemployment rate, which is hovering near its highest levels since the mid-1980s.
"At the same time we’ve got speculators trying to bid this higher, and that won’t change until they either run out of money or go somewhere else," Addison Armstrong, director of market research at Tradition Energy, a Stamford, Connecticut-based broker, told Bloomberg.