Oil pares gains in rangebound session after US Fed delays rate cut prospects in June verdict; Brent at $82/bbl
₹6,588 per barrel on the multi commodity exchange (MCX).
-The US Labor Department said the producer price index (PPI) for final demand dropped 0.2 per cent last month. Separate data showed weekly initial jobless claims exceeded estimates for a 10-month high.-The US Fed held interest rates steady on and pushed out the start of policy easing to as late as December.
Fed chair Jerome Powell implied no definitive time frame for a rate reduction which appeared to place additional pressure on the energy complex, according to analysts. Higher borrowing costs tend to dampen economic growth and can limit oil demand.-In a press conference after the US central bank's two-day policy meeting, Fed Chair Jerome Powell said that inflation had fallen without a major blow to the economy.
If the US Fed cuts rates too soon, it risks reigniting inflation, which is still volatile over geopolitical conflicts.-On the supply side, US crude stockpiles rose more than expected last week, driven largely by a jump in imports, while fuel inventories also increased more than expected, data from the Energy Information Administration (EIA) showed on Wednesday.-A bearish report by the International Energy Agency (IEA), which warned of excess supply in the near future, also weighed on prices. Crude oil traders are also watching continuing talks over a potential ceasefire in Gaza, which could ease fears of oil supply disruptions in the region.-In the latest attack on shipping, Iran-allied Houthi militants on Wednesday took responsibility for an attack by small craft and missiles that left a Greek-owned coal carrier in need of rescue near Yemen's Red Sea port of Hodeidah.The militant group has attacked international shipping in the Red Sea region since
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