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Prices for Brent crude dropped significantly today , while the price of WTI crude oil has remained almost unchanged, amid fears that the U.S. Federal Reserve may loosen its monetary stimulus program , as well as expectations that U.S. crude inventories declined for the previous weeks . Note that the reduction of QE will boost the dollar , which would put pressure on the dollar-denominated commodities, including oil, and indirectly curb investment flows into these markets.
Falling oil prices also due to the fact that many traders begin to take profits on oil brand Brent, after yesterday prices rose 1.5 percent , amid continuing unrest in Libya , which may reduce the supply of oil .
Trading volumes remain low , and are expected to remain so , as many hedge funds closed their positions and the market gradually starts to prepare for the holiday period .
Meanwhile, adding that U.S. oil prices rose slightly on expectations that inventory data , which will be presented today and tomorrow, will show that oil stocks declined.
Experts expect that commercial crude oil inventories fell by an average 3.6 million barrels last week due to lower imports.
It is also worth noting that a small influence on the bidding had U.S. data , which showed that in December housing market index from NAHB rose 4 points to 58 . Economists had expected the index to rise to the level of only 55 points .
All three components of the index improved their values , led by growth by 6 points to 64 in the current conditions of sales. Smaller increase was recorded in sales expectations component ( 2 to 64 ) and the traffic of potential buyers ( 3 to 44 ) . In terms of regions , the Northeast index fell , but rose in other areas .
Cost January futures for U.S. light crude oil WTI (Light Sweet Crude Oil) fell $ 0.08 - to $ 97.40 per barrel on the New York Mercantile Exchange.
January futures price for North Sea Brent crude oil mixture increased by $ 1.91 to $ 108.54 a barrel on the London exchange ICE Futures Europe.
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