Shadow
08-01-2012, 12:11 AM
Oil prices fell for a second straight day on Tuesday on expectations that any central bank stimulus may be insufficient to revive economic growth, even as hopes dimmed that the U.S. Federal Reserve will act this week to boost the economy.
Supportive data from the United States, including higher home prices, improved consumer confidence and Midwest business activity was seen as lowering the chance of more stimulus from the Fed when its two-day policy meeting ends Wednesday.
"Oil prices are lower on the paradox of slightly better economic data in the form of the Chicago PMI and the consumer confidence reading," said John Kilduff, a partner at Again Capital LLC in New York.
"The slightly positive readings may keep the Fed from acting as fully as the markets have priced in. Also, the comments from various German leaders have taken away some the expectations for ECB action," Kilduff added.
Even with two days of losses, Brent crude remained on pace to post a 7 percent rise in July and to snap a string of three monthly declines.
Read more: http://www.foxbusiness.com/markets/2012/07/31/oil-rises-on-hopes-china-growth/#ixzz22GhJh3Ru
Supportive data from the United States, including higher home prices, improved consumer confidence and Midwest business activity was seen as lowering the chance of more stimulus from the Fed when its two-day policy meeting ends Wednesday.
"Oil prices are lower on the paradox of slightly better economic data in the form of the Chicago PMI and the consumer confidence reading," said John Kilduff, a partner at Again Capital LLC in New York.
"The slightly positive readings may keep the Fed from acting as fully as the markets have priced in. Also, the comments from various German leaders have taken away some the expectations for ECB action," Kilduff added.
Even with two days of losses, Brent crude remained on pace to post a 7 percent rise in July and to snap a string of three monthly declines.
Read more: http://www.foxbusiness.com/markets/2012/07/31/oil-rises-on-hopes-china-growth/#ixzz22GhJh3Ru