Quick overview

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Crude oil prices saw a minor decrease on Wednesday. Oil traders are anxiously awaiting the Federal Reserve’s decision on interest rate cuts due to persistent geopolitical concerns that are keeping prices low. Brent crude futures fell to $68.30 a barrel, while West Texas Intermediate crude futures fell to $64.40 a barrel.

Concerns about possible disruptions in Russian oil supplies were a major factor in the recent price increase.

 

Investors are also looking forward to the results of the Federal Reserve’s meeting on September 16–17, which will include discussions involving new governor Stephen Miran, who is currently on leave from the Trump administration, and Lisa Cook, another policymaker who is facing removal threats from President Donald Trump. It is widely expected that the central bank will lower interest rates by 25 basis points during this meeting, a move that could stimulate economic growth and boost demand for fuel.

 

Additionally, the potential for further 25-basis-point rate cuts in October and December suggests that any “buy-the-rumor, sell-the-fact” behavior in risky assets, such as crude oil, is likely to be short-lived.

 

The American Petroleum Institute recently reported that, during the week ending September 12, distillate stocks increased, while crude and gasoline stocks declined. Specifically, distillate inventories rose by 1.91 million barrels, crude stocks decreased by 3.42 million barrels, and gasoline inventories fell by 691,000 barrels. Analysts had predicted a decrease of roughly 900,000 barrels in crude inventories, an increase of about 1 million barrels in distillate stockpiles, and a rise of approximately 100,000 barrels in gasoline stockpiles, according to a Reuters poll.