Tokyo - Oil prices dipped in Asian trade on Tuesday as investors paused ahead of a US central bank meeting, hoping for clues about the future of its stimulus.
New York's main contract, West Texas Intermediate for delivery in September, was down 26 cents at $104.29 a barrel and Brent North Sea crude for September eased 10 cents to $107.35.
Analysts said investors were taking a breather from a recent rally while waiting for a meeting Tuesday of the US central bank's policy-setting Federal Open Market Committee (FOMC).
Focus will be on a clear timeline for the Fed to reel in its $85 billion-a-month bond-buying programme, with some analysts saying it could come as early as September.
“At the July 30-31 FOMC meeting, we expect an ambiguous signal from the Fed about the exact timing of tapering, causing markets to rethink whether September really is a done deal,” analysts at Bank of America Merrill Lynch said in a note.
“The majority of voters (on the committee) are likely still looking to move before year-end,” they said.
“However, given the weak GDP and inflation data, there probably is not a strong consensus about exactly when to pull the trigger.” - AFP
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