YEREVAN, August 21. /ARKA/. Brent crude eased for a third session out of four to trade under $110 a barrel on Wednesday, reflecting caution among investors waiting for more clues from the U.S. Federal Reserve on its stimulus strategy.
Brent touched one-week lows on Tuesday on worries the Fed would curb its monthly $85-billion bond purchases from next month. The bond purchases have boosted market liquidity and supported commodities in recent years.
But supply risks amid tensions in Egypt and Libya provided some support to oil prices.
Brent crude for October delivery was down 42 cents at $109.73 a barrel by 0406 GMT.
U.S. October oil was 27 cents lower at $104.84 a barrel. The September contract expired on Tuesday, closing down 2 percent at $104.96, its largest one-day loss in two months.
"A lot of money has come out of the market because of the uncertainty over the Fed's stimulus policy, so expect to see rangebound trading like we have had in the past few weeks," said Carl Larry, president of Houston-based consultancy Oil Outlooks and Opinions.
The Fed will release minutes of its latest policy meeting later on Wednesday, with investors looking for clues on when it plans to taper its bond purchases. –0--