Oil prices steady ahead of US Fed rate decision
Oil prices traded in a narrow range on Wednesday as investors remained cautious ahead of a potential interest rate cut by the US Federal Reserve and its projections for 2025, while a drawdown in US crude inventories provided little support.
Brent crude futures rose 42 cents, or 0.57%, to $73.61 a barrel by 1201 GMT, while US West Texas Intermediate crude rose 47 cents, or 0.67%, to $70.55 a barrel
The Fed is widely expected to cut interest rates by a quarter point, but to signal a cautious approach to easing monetary policy next year.
"A quarter-point cut in itself is unlikely to shake markets too much. Investors are probably more focused on hints and signals about how big a pause is likely to be in January, as well as on how many rate cuts policymakers are contemplating throughout 2025," said Charalampos Pissouros, senior investment analyst at brokerage XM.
Lower interest rates lower borrowing costs, which can boost economic growth and oil demand.
Source: Investing.com
