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World oil prices fell in Asia today as investors awaited a decision after a two-day policy meeting of the US central bank, which analysts said could set the tone for a weaker dollar.
A softer greenback will make dollar-priced oil cheaper, boosting demand and leading to higher prices.
New York’s main futures contract, light sweet crude for June, was down 19 cents at $112.02 a barrel, while Brent North Sea crude for delivery in June eased 22 cents to $123.92.
“The oil market has been fairly flat, there’s not really been a whole lot of movement,” said Mr Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
“The market is watching what is going to come out of the US Federal Reserve Bank meeting. The market is watching for comments from Fed chairman Ben Bernanke on whether monetary tightening will begin,” he said.
The meeting “will be important in maintaining the weak tone for the US dollar for the rest of the second quarter,” Singapore’s DBS Bank said in a market commentary.
Bank policymakers are widely expected to maintain ultra-low interest rates to support an economy that has been plagued by high unemployment.
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