Oil prices remained rangebound and steady on Wednesday, with traders cautious ahead of the Federal Reserve's interest rate decision. While Brent oil futures hovered at $73.20 per barrel, West Texas Intermediate crude futures remained flat at $69.66 per barrel.
The oil market had gained last week, driven by concerns over U.S. sanctions on Russian oil. However, the momentum waned due to fears of weakening demand in China and potential oversupply in 2024. A stronger U.S. dollar added further pressure, as traders favored the currency before the Fed's meeting.
The American Petroleum Institute (API) reported a 4.7 million barrel decline in U.S. crude oil inventories last week. This exceeded the expected draw of 1.9 million barrels, signaling tightening supplies.
However, gasoline and distillate stockpiles rose, increasing by 2.4 million barrels and 700,000 barrels, respectively. This rise suggests cooling demand for fuel, driven by reduced travel during the winter months. Analysts expect this trend to persist through early next year.
Notably, this week’s inventory draw followed two weeks of significant builds. The API data often mirrors U.S. government inventory reports, which traders anticipate for further confirmation.
All eyes are on the Federal Reserve meeting, concluding later today. A 25-basis-point rate cut is expected, but traders are seeking clues about the Fed's future rate policy.
Recent data showing sticky inflation, strong consumer spending, and robust employment have fueled speculation of slower rate cuts in the coming months. This scenario has bolstered the dollar, negatively impacting oil prices.
Higher interest rates in 2024 could slow economic growth, dampening oil demand. However, resilience in the U.S. economy might counteract this effect.
China, the world’s largest oil importer, continues to post lackluster economic data. Despite hints at additional stimulus measures, the signals have failed to inspire confidence. Persistent concerns over slowing Chinese demand remain a significant headwind for global oil markets.
Stay informed on the latest Forex and oil market news by visiting our website: FIXIO Markets.
Oil prices remained steady as traders awaited the Federal Reserve's rate decision. Learn more about market trends and inventory updates.
Superior trade execution & trading conditions with the NDD method.
The online FX industry provides a platform for investors worldwide to engage in the buying and selling.
Subscribe to our daily newsletter and get the best forex trading information and markets status updates
Trade within minutes!
日本語
English
Comment (0)