Oil prices fall as US fails to announce any stimulus

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Oil prices fall as US fails to announce any stimulus

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Oil prices fell after the US central bank failed to announce any new economic stimulus measures.

02 August,2012 10:21 am

New Yorks main contract, light sweet crude for delivery in September, shed 12 cents to $88. 79 a barrel and Brent North Sea crude for September delivery fell 14 cents to $105.82.Oil prices were pressured after the US Federal Reserve said the economy had lost some momentum but offered no new stimulus that could shore up growth and translate into higher fuel demand, analysts Phillip Futures said in a report.The Feds decision to keep monetary policy unchanged on Wednesday was widely expected but disappointed some investors who had hoped for additional economic stimulus.Despite inching lower, crude markets were supported by positive economic data out of China, and on some tightening of US oil fundamentals, said Sanjeev Gupta, who heads the Asia-Pacific oil and gas practice at Ernst and Young.Data released from the US overnight showed crude stockpiles falling by 6.5 million barrels in the week ending July 27, instead of the much smaller drop of 800,000 barrels expected by analysts polled by Dow Jones Newswires. The date indicated that energy demand in the worlds largest oil consumer was holding up.Meanwhile, Chinas manufacturing activity picked up modestly to a three-month high in July as factory output rose, boosted by government measures to stimulate the economy, HSBC said Wednesday.