Oil prices ease ahead of US Fed rate decision

EIA report suggests weekly draw in stocks was in line with estimates

NEW YORK:

Oil prices eased on Wednesday ahead of the US Federal Reserve’s interest rate decision, with investors uncertain when rates will peak and how that will affect energy demand.

A US Energy Information Administration (EIA) report showed a weekly draw in crude stockpiles that was in line with analysts estimates.

Brent futures for November delivery fell 46 cents, or 0.5%, to $93.88 a barrel by 1602 GMT. US West Texas Intermediate crude for October delivery fell 20 cents, or 0.2%, to $91.00.

The WTI contract for October expires on Wednesday. WTI crude futures for November, which will soon be the US front-month, was up about 18 cents to $90.30.

Despite the small price decline, both Brent and WTI were in technically overbought territory for a 14th straight day, which would be the longest streak for Brent since 2012 and WTI since 2018.

Investors were awaiting the Fed’s interest rate decision at 1800 GMT to assess the outlook for economic growth and fuel demand. The Fed is widely expected to keep interest rates steady.

Published in The Express Tribune, September 21^st, 2023.

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