West Texas Intermediate crude dropped to the lowest level in more than a week amid speculation that the Federal Reserve will reduce economic stimulus.

Futures fell as much as 0.8 percent. The Federal Open Market Committee will publish minutes of a July meeting today, with 65 percent of economists surveyed by Bloomberg forecasting the Fed will taper bond purchases next month. A U.S. government report today showed U.S. crude supplies decreased by 1.43 million barrels, near a forecast 1.5 million-barrel decline.

WTI crude for October delivery slid 26 cents, or 0.2 percent, to $104.85 a barrel at 10:48 a.m. on the New York Mercantile Exchange. The contract traded at $104.75 before the release of the report at 10:30 a.m. in Washington. The volume of all futures traded was 8.4 percent below the 100-day average.

Brent for October settlement dropped 5 cents to $110.10 a barrel on the London-based ICE Futures Europe exchange. Trading of futures was 9.2 percent below the 100-day average. The European benchmark crude traded at a $5.25 premium to WTI. The spread was $5.04 at yesterday’s settlement, the widest since June 28.

Gold prices stable ahead of today's publication of minutes of the last meeting of the Federal Reserve System.

Gold prices were under pressure for most of this year because of concerns about the fact that the U.S. central bank will begin to phase out its bond-buying program to a recovery in the U.S. economy. The belief that lasted for many years easing of monetary policy the Fed will lead to higher inflation, supported the price of gold.

Meanwhile, there are signs that, despite the recent rise in gold prices, the demand for gold coins and bars of the main consumers in Asia has been limited.

The spread between the cost of gold bullion in China and in London on Tuesday declined to $ 14 per ounce to $ 24 an ounce last week, traders said. Reducing the cost of gold in China, probably indicates a decline in demand in this country, which is the second-largest gold consumer after India.

In addition, the trading volume on the Shanghai Gold Exchange gradually declined since April, and this is "yet another signal that the demand for precious metals in Asia seems to be waning," - traders said.

As for India, which began on Tuesday, the Hindu festival of Raksha Bandhan is not provoked the traditional increase in demand for gold and silver, traders said. This festival offers a three-month season, when consumers tend to consider buying gold and silver right step.

The cost of the October gold futures on COMEX today dropped to $ 1359.60 per ounce.

Change % Change Last

GOLD 1,372.00 5.80 0.42%

OIL (WTI) 104.96 -2.14 -2.00%