Crude prices fell in Asia on Wednesday after a US Federal Reserve official questioned the ability of the bank’s recent stimulus plans to boost the world’s biggest economy, analysts said.
New York’s main contract, light sweet crude for delivery in November sank 46 cents to $90.91 a barrel in the afternoon and Brent North sea crude for November delivery shed 59 cents to $109.86.
Charles Plosser, head of the Fed’s Philadelphia branch, dragged US markets down after he said he doubted the economic impact of the third round of bond-buying, known as quantitative easing (QE3), announced this month by the central bank.
“A high-profile figure in the form of… Plosser questioned the effect QE3 would have, particularly on labour markets,” IG Markets said in a report.
“Many traders feel central bank stimulus is merely a sticking plaster for a broken leg, and that much more needs to be done to send the global economy safely on the road to recovery.”
