Brent crude oil slipped below $108 a barrel on Wednesday as the dollar gained ahead of eagerly awaited word from chairman Ben Bernanke on the US Federal Reserve’s plan to roll back its monetary stimulus, upstreamonline.com reported.
Oil, particularly the US benchmark, is also under pressure after an industry report showed a build-up in US gasoline stocks at the peak of the driving season.
Brent crude slipped 37 cents to $107.77 a barrel by 0942 GMT. US oil fell 56 cents to $105.44.
The August Brent contract, which ended on Tuesday, had settled at $109.40, the highest finish since 2 April.
“Commodity prices are under pressure ahead of Bernanke. There’s some negative impetus from external factors such as the somewhat stronger dollar,” said Carsten Fritsch of Commerzbank.
“And it’s normal for there to be some profit-taking with oil at these higher levels,” he added.
A stronger dollar makes oil more expensive, which dampens demand for fuel.