Oil Drops for Third Day as Fed’s Fisher Reignites Tapering Fear

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.

via Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza