Brent oil fell by more than $1 on Tuesday and U.S. oil reversed an early rise, pressured by the specter of the U.S. Federal Reserve tapering its monetary stimulus program.
Brent futures for January lost nearly $1 to dip under $109, after settling $1.64 higher on Monday, its biggest daily gain in two weeks. U.S. crude futures gave up early gains, falling 26 cents to settle at $97.22, after a new round of data fanned the flames of Fed speculation.
The Fed’s policy-making Federal Open Market Committee is meeting on Tuesday and Wednesday during which officials could decide to trim the Fed’s $85 billion asset purchasing program, should they interpret recent strong U.S. economic data to mean the economy is recovering.
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