Crude ends down as supply jitters, Fed worries stifle rally
U.S. oil futures ended sharply weaker on Monday on the view that supplies were ample, along with worries that demand could weaken, after a U.S. Federal Reserve policy maker suggested the central bank may taper its bond buying program.
The president of the Federal Reserve Bank of New York, William Dudley, said he was ``getting more hopeful'' on prospects for U.S. economic recovery, suggesting that the Fed may ease up on the commodity-friendly bond-buying program.
Investors also awaited news from a meeting beginning on Wednesday between Iran and world powers over ending its nuclear program that may provide insight on whether sanctions against Iran would be lifted and, if so, when.
January Brent crude was down 10 cents to trade above $108 a barrel by Monday morning, while U.S. crude for December delivery settled down 81 cents at $93.03. The steeper drop in U.S. oil prices widened Brent's premium by 70 cents.
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