Oil prices remained relatively stable on Wednesday as traders awaited cues from the Federal Reserve’s interest rate meeting. Crude futures for February steadied at $73.74 a barrel, while West Texas Intermediate crude futures rose to $70.30 a barrel.
Industry data showed U.S. oil inventories shrank by 4.7 million barrels in the week to December 13, more than expectations, but gasoline and distillates inventories grew. The American Petroleum Institute’s (API) data indicated that overall U.S. supplies were tightening, but fuel demand was cooling due to reduced travel during the winter season.
The Fed is expected to cut interest rates by 25 basis points, but traders are watching for signals on future rate cuts. Expectations of slower cuts have boosted the dollar, which weighed on oil prices. Concerns over slowing demand in China and a potential supply glut next year also affected oil markets.
A firmer dollar further pressured oil prices, with Brent oil futures expiring in February steady at $73.74 a barrel and West Texas Intermediate crude futures rising to $70.30 a barrel.
Source: https://www.investing.com/news/commodities-news/oil-prices-tread-water-with-fed-in-focus-mixed-inventory-data-weighs-3778430