Crude oil falls on fears over global demand

Crude oil prices slipped further in Asian trade today on fears over global demand but the losses were limited by concerns over the crisis in Ukraine, analysts said.

US benchmark West Texas Intermediate for September delivery was down 29 cents at $101.37 a barrel in late-morning trade and Brent crude for September delivery tumbled 14 cents to $107.43.

Sanctions against Russia

Singapore’s United Overseas Bank said that the prices were hit by “concerns about global demand”, but added that fears of tougher western sanctions against Russia over its support for separatist rebels in Ukraine were providing support.

The European Union is expected today to impose fresh measures against Russia, but there are fears the move could hit the struggling euro zone economy as Russia is a key supplier of energy to the region.

Key US data

Investors are also keeping an eye on the release of key US data, including on second quarter growth and job creation as well as consumer confidence, in the world’s biggest oil consumer.

Fed policy meet

Also, the US Federal Reserve will kick off its latest policy meeting tomorrow and while the bank policymakers are expected to keep the interest rates at record lows and further cut their stimulus programme, investors are hoping for an indication that monetary policy could be tightened soon.

Singapore banking giant DBS said there should be “no surprises” as the Fed has already signalled that it will end its massive economic stimulus measures later this year.

“The Fed has already telegraphed its intention to end asset purchases by October,” DBS said, adding that its intentions would become clearer during its annual symposium on August 21-23 in Jackson Hole, Wyoming.