Oil prices fell today, Wednesday, from their highest levels in ten months, ahead of the announcement of the Federal Reserve (US Central Bank) decision regarding the interest rate, amid a state of uncertainty among investors regarding the date when interest rates will reach their peak and the extent of its impact on energy demand.
Prices fell despite a larger-than-expected draw in US oil inventories and weak US shale oil production, indicating tighter crude supplies in the remainder of 2023.
Brent crude futures fell by slightly more than a dollar to $93.33 per barrel, and fell in the latest trading by 80 cents, equivalent to 0.8 %, to $93.54 per barrel.
While Brent recorded $95.96 yesterday, Tuesday, its highest level since November.
US West Texas Intermediate crude futures fell 0.8 %, or 75 cents, to $90.45 a barrel, after rising to a ten-month high of $93.74 a barrel the day before.
Investors are awaiting a set of interest rate decisions from central banks this week, including the US Federal Reserve’s decision today, to assess economic growth expectations and fuel demand.”
The Federal Reserve is largely expected to keep interest rates unchanged, but the focus will be on its policy path, which is unclear.”
Source: National Iraqi News Agency