|
Brent crude futures for May fell 62 cents, or 0.71%, to $86.76 a
barrel by 1028 GMT. U.S. West Texas Intermediate futures for
April delivery, which expire on Wednesday's settlement, fell 71
cents, or 0.85%, to $82.76 a barrel. The more active May WTI
contract was at $82.11 a barrel, down 62 cents, or 0.75%.
Investors are looking ahead to the Federal Reserve's
announcement later on Wednesday for signs of its interest rate
path for the rest of the year.
The Fed is not predicted to cut borrowing costs, but fresh
economic projections could signal fewer interest rate cuts and a
later start to the policy easing than previously expected.
The U.S. dollar index edged higher ahead of the Fed decision,
which can also dent oil demand for buyers in countries using
other currencies.
"Profit-taking could be a reason for the downside movement
today," Auckland-based independent analyst Tina Teng said,
adding that the recent price rally has been supported by
improving demand outlook and signs of supply reduction.
Brent had settled at its highest since Oct. 31 in the previous
session, at $87.38 a barrel, while WTI hit its highest since
Oct. 27 at $83.47.
Ukrainian attacks on Russian refining assets have helped propel
crude prices higher, as market participants assessed the impact
on crude and fuel supply balances.
"If these disruptions are prolonged, it could eventually force
Russian producers to reduce supply if they are unable to export
all of this crude oil," ING analyst Warren Patterson said.
Investors will also be looking ahead to official stockpile data
from the U.S. Energy Information Administration is at 1430 GMT
on Wednesday. [EIA/S]
The American Petroleum Institute reported U.S. crude oil and
gasoline stockpiles fell last week, while distillate inventories
rose, according to sources. [API/S]
(Reporting by Robert Harvey, Florence Tan in Singapore and
Shariq Khan in New York; Editing by David Evans)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
