Mumbai, 13 Jun (Commoditiescontrol): Crude oil prices edged lower on Wednesday as investors reacted to the U.S. Federal Reserve's decision to maintain current interest rates, along with news of increasing U.S. crude and fuel stockpiles.
Brent crude futures slipped by 14 cents, or 0.17%, to $82.46 per barrel, while U.S. West Texas Intermediate (WTI) crude futures fell by 16 cents, or 0.2%, to $78.34. Both benchmarks had gained approximately 0.8% in the previous trading session.
The Federal Reserve's decision to hold interest rates steady and delay any potential cuts until December has impacted market sentiment. Higher borrowing costs typically slow economic growth, which can, in turn, limit oil demand. Fed Chair Jerome Powell stated that inflation had decreased without severely affecting the economy, suggesting a cautious but positive outlook.
In addition to the Fed's announcement, traders are monitoring ongoing ceasefire talks in Gaza. Resolution of these talks could ease concerns about potential supply disruptions from the region. Recently, Iran-allied Houthi militants claimed responsibility for attacks on shipping near Yemen's Red Sea port of Hodeidah, further escalating tensions.
Meanwhile, the U.S. Energy Information Administration (EIA) reported a larger-than-expected rise in U.S. crude stockpiles, driven primarily by increased imports. Fuel inventories also saw significant increases, contributing to the downward pressure on oil prices.
In a related development, the Palestinian militant group Hamas expressed a positive stance towards the ceasefire negotiations, urging the U.S. to pressure Israel into accepting a permanent ceasefire, reconstruction efforts, and the release of Palestinian prisoners. U.S. Secretary of State Antony Blinken confirmed ongoing efforts to close gaps in the ceasefire proposal.
With these multifaceted influences, oil markets remain sensitive to geopolitical developments and economic indicators, suggesting continued volatility in the near term.
Investors are now closely watching the progress of ceasefire talks and further economic data, which will likely play critical roles in shaping oil price trends in the coming weeks.
(By Commoditiescontrol Bureau: 09820130172)
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