SINGAPORE: World oil prices fell in Asia Wednesday as investors awaited a decision after a two-day policy meeting of the US central bank, which analysts said could set the tone for a weaker dollar.
A softer greenback will make dollar-priced oil cheaper, boosting demand and leading to higher prices.
New York's main futures contract, light sweet crude for June, was down 19 cents $112.02 a barrel, while Brent North Sea crude for delivery in June eased 22 cents to $123.92.
"The oil market has been fairly flat, there's not really been a whole lot of movement," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
"The market is watching what is going to come out of the US Federal Reserve Bank meeting. The market is watching for comments from Fed chairman Ben Bernanke on whether monetary tightening will begin," he told AFP.
The meeting "will be important in maintaining the weak tone for the US dollar for the rest of the second quarter," Singapore's DBS Bank said in a market commentary.
Bank policymakers are widely expected to maintain ultra-low interest rates in a bid to support an economy that has been plagued by high unemployment.
Many experts predict the post-meeting statement will show no change in plans to end a $600 billion bond purchasing programme -- known as quantitative easing -- in June, meaning more dollars flowing around the market.
Shum said investors also continue to monitor the turmoil in the Middle East and North Africa which could impact supplies.
But he said concerns about high oil prices negatively impacting demand growth and global economic recovery are limiting the increase.
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