Oil rose ahead of the Fed’s monetary policy decision and OPEC+’s Joint Ministerial Monitoring Committee (JMMC).
U.S. crude oil hit over $79 after rising 1% on Tuesday. While the US Federal Reserve is expected to raise interest rates again at its Wednesday meeting, it is expected to increase by 25 basis points instead of the 50 basis point move agreed in December due to the signs of cooling in inflation.
On the other hand, it will follow the decision to be made at the JMMC meeting to be held by OPEC+ countries, including Russia, in the middle of the market.
Delegate countries predict that a decision will be made to keep the production level constant in the meeting to be held before the new sanctions against the Russian power, which is expected to arrive in a few days.
Crude oil carried its loss for the third month in January, despite a wave of optimism that China’s zero-Kovid policy would revive demand in the country, the world’s largest crude oil importer. While growth is picking up in the country, the weakness observed in producers and residential sales indicates that the recovery is not on solid foundations now.
“Oil prices seem to be finding their place. A random hawk from the Fed can bring back the downward pressure,” said Yeap Jun Rong, Market Strategist at IG Asia Pte.
US crude oil for March delivery rose 0.2 percent to $79.03 a barrel.
Brent oil for April delivery held steady at $85.49 a barrel.
On the other hand, the industry-funded American Petroleum Institute (API), based on knowledgeable sources, noted in its report that fuel and diesel stocks reached 6.3 million barrels last week. Official figures will be announced on Wednesday.