West Texas Intermediate crude oil futures on Thursday were dropping after Chairman Ben Bernanke with the U.S. Federal Reserve said stimulus measures might close by the end of this year, Bloomberg reports.
A weaker-than-anticipated Purchasing Managers' Index released by China for this month also tugged down the energy commodity on Thursday, as the Asian nation trails only the U.S. for consumption of oil. After two days of Fed meetings adjourned, Bernanke said that the U.S. economy's continued growth would indicate whether the stimulus program is needed.
"The change in policy from the Fed and rising supplies are weighing on the market," chief executive officer Jonathan Barratt with commodity newsletter Barratt's Bulletin in Sydney told the news source on Thursday. "The Fed tapering implies that the economy is going well and that demand will be there. When you look at what inventories are actually doing, it's not that good."
At 11:07 a.m. on Thursday, WTI crude oil futures fell 2.86 percent, a $2.81 drop to $95.43 per barrel. Brent crude oil futures dropped 3.02 percent, a $3.20 dive to $102.92 per barrel.
Reuters reports the energy commodity's losses on Thursday also came as a result of stronger inventories in the U.S., as announced on Wednesday by the U.S. Energy Department.
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