Oil prices fell on Wednesday ahead of the Federal Reserve’s interest rate decision, with investors unsure about when rates will peak and the extent of this impact on energy demand.
Investors are awaiting the Federal Reserve’s decision on interest rates at 6pm GMT on Wednesday to assess the prospects for economic growth and fuel demand.
The US central bank is widely expected to maintain interest rates, but the focus will be on its expectations for the stance of its monetary policy, which is unclear.
“Oil prices will not rise again for a short period of time as every trader awaits a major decision from the Federal Reserve that could change the balance on whether the US economy will witness a soft or sharp decline,” says Edward Moya , chief market analyst at OANDA. , a data and analytics company.
By 1152 GMT, global benchmark Brent crude futures fell 69 cents, equivalent to 0.73 percent, to $93.65 a barrel, paring losses after falling $1.58 to a record low on Wednesday during the day.
U.S. West Texas Intermediate crude futures fell 72 cents, or 0.79 percent, to $90.48 a barrel. These contracts expire today, Wednesday, for the month of October.
November contracts fell 73 cents, or 0.81 percent, to $89.75 a barrel by 1152 GMT.
Market sources said despite a drop in US crude inventories last week, prices fell by around 5.25 million barrels, citing American Petroleum Institute figures yesterday, Tuesday.
Analysts had expected a decline of 2.2 million barrels in a Reuters poll.
Tamas Varga, analyst at oil brokerage PVM, said: “Barring any unpleasant surprise, attention is likely to shift to the perceived supply tightness once decisions on interest rates are made, and the possibility of a barrel reaching the $100 level remains a possibility . .”
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