|
Brent January crude futures were up about 1.1%, or 90 cents, to
$85.92 a barrel by 1042 GMT. U.S. West Texas Intermediate crude
futures also gained 1.1%, or 90 cents, to $81.92 a barrel.
"Crude prices are steadying ahead of a key issuance update by
the Treasury and FOMC rate decision," said OANDA analyst Edward
Moya, referring to the Federal Open Market Committee that sets
the direction of U.S. monetary policy.
The Fed, which will end its meeting on Wednesday, is widely
expected to hold rates steady.
In Europe, October inflation in the Euro zone was at its lowest
level in two years, a Eurostat flash reading showed, leading to
expectations the European Central Bank is unlikely to hike
interest rates soon. The Bank of England is expected to meet on
Thursday.
Interest rate hikes aimed at taming inflation can slow economic
growth and dampen oil demand.
In China - the world's largest oil importer - factory activity
unexpectedly contracted in October, a private survey showed on
Wednesday, adding to downbeat official figures from a day
earlier and raising questions over its fragile economic
recovery.
"Geopolitical risks remain and that seems to be offsetting some
of the record production levels that are coming from the U.S.,"
added Moya.
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.
In Gaza, a first group of injured people were evacuated to Egypt
on Wednesday, a source and Egyptian media said, as Israeli
forces pressed on in their battle against Hamas militants.
Iran's Supreme Leader Ayatollah Ali Khamenei on Wednesday called
on Muslim states to cease oil and food exports to Israel,
demanding an end to its bombardment of the Gaza Strip, state
media reported.
(Reporting by Natalie Grover in London, Mohi Narayan in New
Delhi and Emily Chow in Singapore; editing by Muralikumar
Anantharaman and Jason Neely)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
