NEW YORK – The price of oil fell again Tuesday, slipping toward $106 a barrel, as traders waited for the US central bank to signal when it will start scaling back its monetary stimulus. By early afternoon in Europe, benchmark oil for October delivery was down 78 cents to $106.32 a barrel in electronic trading on the New York Mercantile Exchange. The September contract fell 36 cents to settle at $107.10 on Monday. Brent crude, which is used to price imported oil used by many US refineries, was down 44 cents to $109.46 a barrel for October delivery on the ICE Futures exchange in London. Evidence that the US economy is improving has led to speculation that the Fed will begin to reduce its $85 billion a month in asset purchases as early as September. The bond-buying program was initiated to help the US economy recover from a tough recession following the 2008 financial crisis. The Fed's stimulus policy has lowered interest rates and made oil and other commodities a more attractive investment by offering potentially higher returns. A "tapering" or phasing down of the program, expected as early as next month, could push oil prices down. Global stock markets have been retreating in recent days as investors scurry to the sidelines to wait out the uncertainty. Traders were awaiting the release Wednesday of minutes from the Fed's July policy meeting for hints of whether and when the bank might begin cutting back on its bond-buying. "As a result of the bearish mood, crude prices have slipped ... sparked by nervous investors taking profit," said a report from Sucden Financial Research in London. "Prices are still well supported at key levels owing to the unrest in Egypt and Libya." Egypt, which controls the Suez Canal crucial to shipping in the Middle East, has been rocked by clashes. — AP
