Oil prices decline for the third consecutive session due to concerns about the level of rates in the United States
Kyiv • UNN
Oil prices fell for the third consecutive session on Wednesday amid expectations that the U.S. Federal Reserve could hold high interest rates longer to combat sustained inflation, potentially affecting fuel demand from the world's largest oil consumer.
Oil prices fell for the third consecutive session on Wednesday on expectations that the U.S. Federal Reserve could keep interest rates high longer due to sustained inflation, potentially affecting fuel use in the world's largest oil consumer. This is reported by Reuters, writes UNN.
Details
Brent crude futures fell 60 cents, or 0.7%, to долара 82.28 a barrel at 05: 46 EET, while West Texas Intermediate (WTI) U.S. crude futures fell 64 cents, or 0.8%, to долара 78.02.
On Tuesday, oil prices fell by about 1%.
Fed policymakers said the U.S. central bank should wait a few more months to make sure inflation is indeed back on track for the 2% target before cutting interest rates.
Higher borrowing costs could slow economic growth and put pressure on oil demand.
U.S. crude oil and gasoline inventories rose last week, while distillate inventories fell, according to data from the American Petroleum Institute (API) released Tuesday.
Investors are waiting for the minutes of the last Fed meeting and weekly data on US oil reserves from the US Energy Information Administration (EIA), which will be published later on Wednesday.
The minutes of the Federal Open Market Committee (FOMC) meeting will be scrutinized for the Fed's assessment of surging inflation in the first quarter and hints on the timing and extent of a potential interest rate cut in 2024.,
The euro zone almost promised to cut rates on June 6 amid more positive economic forecasts. European Central Bank President Christine Lagarde said in an interview that aired on Tuesday that she is "really confident" that inflation in the euro area is under control.
