The US Federal Reserve’s interest rate announcement, oil prices began retreating from recent highs.
Oil prices dip: Investors are unsure of when interest rates will peak and how it would impact the demand for energy.
Oil prices fell despite the fact that US oil stockpiles decreased more than anticipated and US shale oil production remained low. This implies that the oil supply may be limited for the remainder of 2023.
The global standard for crude oil, Brent, decreased marginally to $93.33 per barrel from $95.96 on Tuesday, when it reached its highest level in nearly a year.
Additionally, US West Texas Intermediate crude fell from its 10-month peak to $90.45 per barrel.
According to experts, the oil market is still quite tight and will remain so for some time. The demand for oil should gradually decline unless there is a significant change on Wall Street, but there will probably be a shortage of oil during the winter.
Investors are eagerly monitoring central banks’ decisions this week about interest rates, especially those made by the US Federal Reserve. We will learn more about the economy and gasoline consumption from this.
“Many people are interest in the direction the Federal Reserve will take in the future, even though it is anticipate to maintain stable interest rates.”
“Oil Supply Concerns Rise as US Inventories Fall and Russia Considers Export Duties”
Experts report that US inventories held about 5.25 million fewer barrels of oil last week than expected. This decline in supplies, along with a slowdown in US shale oil output, is increasing concerns about oil supply.
To address fuel shortages, Russia is also thinking about boosting export duties on oil-related goods.
This occurs at a time when continued production restrictions by Saudi Arabia and Russia are likely to cause US shale oil production to decline to its lowest level since May 2023.
On the other hand, maintenance and fewer shipments from Russia caused India’s crude oil imports to decline in August for the third consecutive month.