Brent futures slid toward $109 a barrel on Thursday as a looming U.S. budget deal backed expectations the Federal Reserve may act soon to unwind a stimulus programme that has supported oil prices.
Oil fell along with most other commodities, while Asian shares fell to a four-week low, after Republicans in the U.S. House of Representatives were seen backing a two-year budget deal negotiated behind closed doors.
“Passing of the budget would give the Fed one last reason to exit the stimulus programme. Expectations are creating a weaker sentiment for oil and other commodities,” said Chee Tat Tan, investment analyst at Phillip Futures in Singapore.
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