The prices of Petroleum experience a drop in anticipation of the determining resolution of the Federal Reserve of the United States on the interest rates. Investors are in a state of uncertaintyevaluating when the peak in the cost of credit will be reached and what its impact will be on energy demand.
The expectation is placed on the decision of the Fedto evaluate the prospects of economic growth and fuel demand. While the Federal Reserve is expected to maintain rates, Attention will focus on the expected path of its monetary policywhich is still unclear.
Oil: movements awaiting Fed decision
Edward Moyasenior market analyst at data and analytics firm OANDA, said: “The rise in oil is taking a small breather as all traders await a fundamental decision from the Federal Reserve that could tip the balance on whether the US economy has a soft or hard landing.
In this context, Brent benchmark futures fell 69 cents, equivalent to 0.7%, standing at US$93.65 per barrel. This represented a cut in losses after trading lower than $1.58reaching its intraday low on Wednesday.
US crude oil futures West Texas Intermediate It also suffered a drop, losing 72 cents, or 0.8%, and reaching US$90.48 per barrel. The October WTI contract expires on Wednesday, while that of November, more active, drops 73 centsor 0.81%, up US$89.75 per barrel.
Despite the decrease in prices, This occurred despite the fact that crude oil inventories in the United States fell by approximately 5.25 million barrels last week, according to market sources, who cited figures from the American Petroleum Institute. Analysts, in a Reuters poll, expected a decline of 2.2 million barrels.
Tamas Varga, analyst at the oil brokerage PVM, said: “Barring unpleasant surprises, attention will likely return to perceived supply shortfalls once interest rate decisions are out of the way and reaching the milestone of $100 per barrel remains a not-too-distant possibility.”
Additionally, analysts from Goldman Sachs increased their 12-month forecasts for Brent, going from 93 dollars a barrel to 100 dollars. This modification is based on the anticipated slightly larger reduction in inventories, driven by the drastic decrease in OPEC supply and growth in demand, largely offsetting the considerable increase in US supply.
Source: Ambito
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