Posted: Jul 31, 2012 11:09 AM by AP
NEW YORK (AP) - Oil prices are falling as hopes fade for a new round of government stimulus in the U.S.
Benchmark U.S. crude gave up $1.13 to $88.65 per barrel in New York on Tuesday, while Brent crude lost 82 cents to $105.38 per barrel in London.
Traders have been guessing for months about when and whether the Federal Reserve would try to spark the economy. Hopes rose last week, then faded Tuesday, following reports of strengthening consumer confidence and home values.
As long as the economy shows signs of life, the Fed may hold off on any new stimulus measures, analyst Phil Flynn said.
"Good news is bad news when it comes to the stimulus," he said.
The Fed will talk about possible stimulus measures at a policy meeting this week.