Oil rates show mixed results before Fed meeting, inflation data from US
Date
6/11/2024 8:05:11 AM
(MENAFN) Oil markets showcased a mixed performance on Tuesday as anticipation mounted ahead of crucial events, including the US Federal Reserve meeting and impending inflation data from the world's largest oil consumer.
At 10:27 a.m. local time (0727 GMT), the international benchmark brent crude traded at USD81.61 per barrel, reflecting a marginal decrease of 0.02 percent compared to the previous session's closing price of USD81.63 per barrel.
Simultaneously, the American benchmark West Texas Intermediate (WTI) stood at USD77.75 per barrel, marking a slight uptick of 0.01 percent from the previous session's closing rate of USD77.74 per barrel.
Investor focus remained on the upcoming release of the US consumer price index data and the conclusion of the Fed's two-day policy meeting, both scheduled for Wednesday. Market participants keenly awaited insights into the Fed's stance on monetary policy, particularly regarding the federal funds rate, which is widely anticipated to remain unchanged within the 5.25 percent-5.5 percent target range. Attention will be directed towards chair Jerome Powell's post-meeting news conference for further guidance on future policy directions.
The reduced likelihood of an interest rate cut this year exerted downward pressure on oil prices, as it potentially signals sustained economic stability, impacting demand projections.
Additionally, market sentiment was influenced by the impending release of OPEC's monthly oil market report scheduled for Tuesday. This report is expected to provide crucial indicators concerning the balance between market supply and demand, offering insights into the ongoing dynamics of the oil market.
As oil prices continue to react to global economic indicators and geopolitical developments, investors remain vigilant for signals that could impact future price movements and market stability.
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