Oil prices
US crude stocks rose by regarding 3.3 million barrels per week
Oil prices fell in early Asian trading today, Wednesday, to trim their gains for two consecutive days, following 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 at 06:23 GMT. It had risen by more than 3% this week.
West Texas Intermediate crude futures fell 63 cents, or 0.9%, to $69.04.
Sources said that data issued by the American Petroleum Institute on Tuesday showed an increase in crude stocks in the United States by regarding 3.3 million barrels in the week ending March 17, quoting Archyde.com.
The huge increase contradicted the expectations of 8 analysts polled by Archyde.com for a decline in stocks by regarding 1.6 million barrels.
Traders and analysts will be watching data from the US Energy Information Administration on Wednesday to see if it confirms signs of weak demand for crude oil.
Meanwhile, markets are awaiting the outcome of today’s US Federal Reserve meeting, in what is widely seen as the most difficult monetary policy stance the Fed has faced in recent times.
After the meeting, US Central Bank President Jerome Powell is expected to reveal new economic forecasts and the bank’s path to raising interest rates.
While the market expects the Federal Reserve to raise interest rates by 25 basis points on Wednesday, central bank watchers say it may pause further hikes or delay issuance of new economic forecasts due to turmoil in the global banking sector.
A pause in raising interest rates may help revive economic activity and thus increase demand for fuel.
Oil prices recorded their sharpest drop in months last week, following the collapse of major US banks beginning on March 10 and a crisis at European bank Credit Suisse culminated in an emergency bailout over the weekend.
OPEC+ officials, hedge fund managers and oil market participants have described the recent drop in oil prices as a result of speculation and insist that increased demand will push prices higher in the coming months.
