Oil nudged down on fresh interest rate hikes; small draw in US inventories
International benchmarks for crude oil descended about 1% on Wednesday, 26 July 2023 as reports suggested US crude inventories decreased less than expectations
International benchmarks for crude oil descended about 1% on Wednesday, 26 July 2023 as reports suggested US crude inventories decreased less than expectations while the Federal Reserve lifted interest rates by another 0.25%.
Latest report from the Energy Information Administration (EIA) showed the US commercial crude inventories dropped merely 600,000 barrels last week, significantly lower than the market expectations of 2.35 million barrels draw.
Meanwhile, the FED raised key interest rates for the 11th time in the last 12 meetings to set the benchmark overnight interest rate in the 5.25%-5.50% range. Additionally, the policy statement indicated another round of rate hikes may be plausible.
Brent crude slipped down 72 cents or 0.9% closing at $82.92/barrel.
US West Texas Intermediate dropped 85 cents or 1.1% at $79.79/barrel.