Oil prices fell in early Asian trading yesterday, paring their gains for two consecutive days, after a report showed that US crude inventories rose unexpectedly last week, indicating the possibility of weak demand for fuel.
Brent crude futures fell 63 cents, or 0.84%, to $74.69 a barrel. It had risen by more than 3% this week.
US West Texas Intermediate crude futures fell 63 cents, or 0.9%, to $69.04.
This comes as markets await the outcome of a later US Federal Reserve meeting, in what is widely seen as the most difficult monetary policy situation the Fed has finally faced.
After the meeting, it is expected that US Central Bank President Jerome Powell will reveal new economic expectations and the bank's path to raising interest rates.
And while the market expects the Federal Reserve to raise interest rates by 25 basis points, yesterday, observers of the central bank’s movements indicate that it may temporarily stop further increases or delay the issuance of new economic forecasts; Because of the turmoil in the global banking sector.
A pause in interest rate hikes may help revive economic activity, thus increasing fuel demand.
Okaz (Jeddah) @okaz_online