Summary New York's main contract, WTI for delivery in January, shed 21 cents to $97.27 a barrel.
LONDON (AFP) - Global oil prices fell Tuesday on profit-taking, after bumper gains overnight and amid growing expectations the US Federal Reserve will scale back its stimulus programme this week, analysts said.
New York s main contract, West Texas Intermediate (WTI) for delivery in January, shed 21 cents to $97.27 a barrel.
Brent North Sea crude for February lost 65 cents to stand at $108.76 a barrel around midday in London.
"Brent futures slipped ... as the biggest gain in two weeks overnight prompted investors to sell ahead of a key US Fed meet in which the central bank may take a decision on tapering its stimulus," Investec analysts said in a research note.
Crude futures had jumped higher on Monday after armed protesters in Libya refused to lift a months-long blockade of key oil terminals in the eastern part of the country.
Markets are now focused on the US Federal Reserve, which will unveil the outcome of its latest two-day monetary policy gathering on Wednesday.
The Fed s key policymakers will decide whether US economic growth is strong enough to merit cutting back its $85-billion-a-month bond-buying scheme.
"Crude prices sustained downward pressure as the upcoming (Fed) meeting pushes investors to square positions and to stand on the sidelines," Tan Chee Tat, an investment analyst with Singapore-based Phillip Futures, told AFP on Tuesday.
"A series of positive economic releases from the US has once again reignited anticipation for an early taper to take place," he added.
The so-called tapering would likely boost the greenback, making dollar-priced oil more expensive for countries using other currencies, dampening demand.
Tan said US crude oil prices were also weighed by a significant plunge in natural gas prices on Monday, on expectations of "moderate and mild weather", which would curb demand for heating fuel.
"As a result, crude oil is likely to lose some demand as a feedstock, hence pressuring prices," he said.
