Oil crawls back towards 7-week low-mark after US Fed keeps rates at 23-year high; Brent at $83/bbl
₹6,617 per barrel on the multi commodity exchange (MCX). -On Wednesday, crude oil prices fell more than three per cent to a seven-week low after the US Federal Reserve kept interest rates steady and warned of stubborn inflation, which could curtail economic growth this year and limit oil demand increases.
-Data also showed US jobless claims held steady at lower levels last week as the labour market remains fairly tight, ahead of April's employment numbers. The oil market was supported by speculation that if WTI falls below $79, the US will move to build up its strategic reserves, according to analysts.
-Crude oil rates also traded under pressure by data from the Energy Information Administration (EIA) showing an unexpected increase in the US crude inventories, which were at their highest mark since June 2023. -The Organisation of Petroleum Exporting Countries and its allies (OPEC+) have yet to begin formal talks on extending voluntary oil output cuts beyond June, three sources from OPEC producers told news agency Reuters that such an extension could be agreed if demand fails to pick up.
-In the Middle East meanwhile, expectations grew that a ceasefire agreement between Israel and Hamas could be in sight after a renewed push led by Egypt, even as Israeli Prime Minister Benjamin Netanyahu has vowed to proceed with a long-promised assault on the southern Gaza city of Rafah. Milestone Alert!
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