Oil prices edged up in early Asian trade on Wednesday ahead of key global central bank meetings this week including the U.S. Federal Reserve, as the market also closely watched the latest developments in the Israel-Hamas conflict.
Brent January crude futures rose 0.3%, or 28 cents, to $85.30 a barrel by 0330 GMT, after falling more than 1% on Tuesday. Brent December futures settled 4 cents lower at $87.41 a barrel at the contract’s expiry on Tuesday. U.S. West Texas Intermediate crude futures gained 0.2%, or 16 cents, to $81.02 a barrel after losing about 1.6% in the previous session.
“Crude prices are steadying ahead of a key issuance update by the Treasury and FOMC rate decision,” said Edward Moya, senior market analyst at OANDA, referring to the Federal Open Market Committee that sets the direction of U.S. monetary policy.
“Geopolitical risks remain and that seems to be offsetting some of the record production levels that are coming from the U.S.” Crude oil inventories in the U.S. rose by about 1.3 million barrels last week, while fuel stockpiles fell by about 360,000 barrels, according to market sources citing American Petroleum Institute figures on Tuesday. Distillate inventories fell by about 2.5 million barrels. – Reuters
