Crude Oil

Crude Oil Retreats from Recent Highs Amidst Anticipation of US Interest Rate Decision

Brent Crude Stalls Near $82.72 as Traders Await US Fed’s Interest Rate Clue

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Crude oil opened lower on Wednesday following a four-day rally of about 6% gain as traders await clue from U.S interest rate decision.

Brent crude oil, against which Nigerian oil is priced, traded near $82.72 a barrel from its highest close since mid-April. The gains have been fueled by signs that the global market is starting to tighten, and moves by China’s leadership revive growth in the world’s largest crude importer after its recovery faltered.

The Federal Reserve is expected to raise borrowing costs to the highest level in 22 years later Wednesday, while at the same time retaining a tightening bias that signals the possibility of another move upward later this year. Higher rates risk slowing the economy and hurting energy consumption.

Crude has pushed higher this month as supply curbs from OPEC+ heavyweights Saudi Arabia and Russia took hold, with Moscow’s exports ebbing. Markets are tightening and likely already facing a deficit of supply, according to Giovanni Staunovo, a commodities analyst at UBS AG.

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