West Texas Intermediate crude fell for a third day amid speculation that the Federal Reserve may reduce stimulus and after Bank of America’s Francisco Blanch said it will be difficult for WTI to rally much more.
Prices dropped as much as 1.1 percent. Dallas Fed President Richard Fisher, one of the most vocal critics of quantitative easing, said the central bank is closer to slowing $85 billion in monthly bond buying and warned investors not to rely on it. WTI could decline another $8 to $10, Blanch, the head of commodities research at Bank of America in New York, said in an interview with Tom Keene on Bloomberg Radio.
“At this level, it will be hard for WTI to push higher unless there is a major geopolitical event,” Blanch said.
WTI for September delivery decreased $1.03, or 1 percent, to $105.53 a barrel at 9:58 a.m. on the New York Mercantile Exchange. Earlier, it gained as much as 0.7 percent. The volume of all futures traded was 19 percent below the 100-day average.
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