Oil rally cools off as prices slip 2% ahead of US Federal Reserve verdict; Brent down to $85.9/bbl
₹6,746 per barrel on the multi commodity exchange (MCX). -Analysts said that the markets are concerned about the Federal Reserve's rate decision as interest rates have not fallen off like one would have expected.
The Fed will announce its decision at 2 p.m. EDT on Wednesday.
-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 US dollar index edged higher ahead of the Fed decision, which can also dent oil demand for buyers in countries using other currencies.
The US Energy Information Administration (EIA) said crude oil stockpiles fell unexpectedly last week as exports rose and refiners continued to increase activity. -Elsewhere, Ukrainian attacks on Russian refining assets have helped propel crude prices higher as market participants assessed the impact on crude and fuel supply balances.
Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services Ltd said, "Crude oil prices are trading slightly lower today, amid some profit-booking from recent rally and as we look ahead to weekly oil inventory data later in the day.'' Also, some caution is seen in the market ahead of the US Fed meeting outcome. Technically, momentum remains positive with support at 6,780/ 6,685 and resistance at 7,000.'' Milestone Alert!
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