2023-11-01 04:35:00
© Archyde.com. An oil pump in Texas, USA, in a photo from Archyde.com archives.
NEW DELHI (Archyde.com) – Oil prices rose in early Asian trading on Wednesday ahead of meetings of major global central banks this week, including the US Federal Reserve, while the market closely monitors developments in the conflict between the Islamic Resistance Movement (Hamas).
By 0330 GMT, crude futures for January delivery rose 0.3 percent, or 28 cents, to 85.30 per barrel, following falling more than one percent on Tuesday. Brent crude futures for December fell four cents to settle at $87.41 per barrel with the expiration of the contract on Tuesday.
US West Texas Intermediate crude futures increased 0.2 percent, or 16 cents, to $81.02 per barrel, following losing regarding 1.6 percent in the previous session.
“Crude prices are stabilizing ahead of… the interest rate decision from the Federal Open Market Committee,” said Edward Moya, chief market analyst at OANDA, which is the committee that sets the direction of US monetary policy.
“Geopolitical risks remain and that appears to offset some of the impact of record production levels coming from the United States,” he added.
Market sources, citing figures from the American Petroleum Institute, reported on Tuesday that stocks in the United States rose by regarding 1.3 million barrels last week, while fuel stocks fell by regarding 360,000 barrels, and distillate stocks fell by regarding 2.5 million barrels.
Raising interest rates to curb inflation might slow economic growth and reduce demand for oil, while lowering interest rates to stimulate spending might lead to increased oil consumption.
According to a poll conducted by the CME FeedWatch tool, the US Central Bank, which will conclude its meeting today, Wednesday, is expected to keep interest rates steady.
In Europe, inflation in the region reached its lowest level in two years in October, falling to 2.9 percent from 4.3 percent in September, according to a preliminary reading of the European Union Statistics Office (Eurostat), which led to expectations that the European Central Bank would not raise interest rates soon.
The Bank of England will meet on Thursday.
A special survey on Wednesday showed China’s factory activity unexpectedly contracted in October, following pessimistic official figures released the previous day, raising questions regarding the fragile economic recovery at the start of the fourth quarter. China is the world’s largest oil importer.
In the Middle East, Israeli air strikes targeted a densely populated refugee camp in the Gaza Strip on Tuesday, killing at least 50 Palestinians and a Hamas leader.
US Secretary of State Antony Blinken, who will visit Israel on Friday, said that the United States and other countries are examining “a variety of potential alternatives” for the future of the Gaza Strip if the Islamic Resistance Movement (Hamas) is isolated from its rule.
(Prepared by Duaa Muhammad for the Arabic Bulletin)
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