(RTTNews) - Oil prices slumped Tuesday, with losses accelerating after the Federal Reserve's monetary-policy announcement.
The US central bank kept interest rates unchanged at a record low, and hinted at further quantitative easing measures to support the economy. However, no concrete steps were unveiled.
November crude oil, the most active contract, dropped $1.22 to $74.97 a barrel on the New York Mercantile Exchange. The front-month October contract settled down $1.34 at $73.52 a barrel.
Earlier today, the Commerce Department said US housing starts rose 10.5% to an annual rate of 598,000 in August from 541,000 in the previous month, exceeding economists' expectations for a more modest increase to 550,000. The report also said building permits grew 1.8% to an annual rate of 569,000 in August, higher than consensus forecasts of an increase to 560,000.
Meanwhile, the dollar extended losses after the Fed announcement and fell to a six-week low versus the euro. Successful bond auctions in Ireland, Greece and Spain underpinned the European single currency.
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