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Crude Down Slightly As Waits For Fed

OIL

Oil has been trading in a narrow range of less than 50c during the APAC session. The recent gains that brought crude to a three-month high have been sustained with prices down only 0.4% today, but the upcoming Fed decision and accompanying comments risk these gains. WTI hasn’t been able to break $80 and is currently around $79.28/bbl while Brent is $83.30. The USD index is up slightly.

  • Crude has been trading sideways as it waits for the Fed decision. WTI reached a low of $79.17 followed by a high of $79.43. Brent’s intraday low was $83.12 and the high $83.42.
  • Later the Fed is widely expected to hike rates 25bp and retain its tightening bias but the comments following will be key to the rate outlook and for oil developments. Despite the recent rally, crude markets remain concerned about demand from both the US and China. A hawkish Fed is likely to increase US recession fears (see MNI Fed Preview - July 2023 here).
  • Bloomberg reported that API US crude inventories rose 1.319mn in the latest week, according to those familiar with the data. Official EIA data is released later today and expected to post a fall.
  • In terms of data, there is only US June new home sales.
Energy BulletsCommodities
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