ANKARA, Sept 20 — Oil prices declined today as investors profited from 10-month price highs due to uncertainties ahead of the much-anticipated US Federal Reserve (Fed) meeting later today, although bearish oil demand data capped further price downturns, reported Anadolu.
International benchmark crude Brent traded at US$93.48 (RM438) per barrel at 09.57 am local time (0657 GMT), a 0.91 per cent loss from the closing price of US$94.34 a barrel in the previous trading session on Tuesday.
The American benchmark West Texas Intermediate (WTI) traded at the same time at US$89.64 per barrel, down 0.93 per cent from the previous session’s close of US$90.48 per barrel.
Brent reached its highest level since last November, hovering around US$95 a barrel on supply concerns after Saudi Arabia and Russia extended curbs until the end of the year.
However, prices dipped today as investors sought to profit from the high price of oil before the Fed announced its next monetary policy decision.
Although investors anticipate that the Fed will keep interest rates unchanged for this month, they will be watching Fed officials closely for any indications of the direction the bank will take moving forward.
However, bullish demand signs in the US limited further price declines following the American Petroleum Institute’s announcement late Tuesday of an estimated fall of 5.25 million barrels in US crude oil inventories, against the market expectation of a 2.66-million-barrel draw.
The US Energy Information Administration’s (EIA) data on oil stocks will be announced later today, and if the stock decline is confirmed to be larger than estimates, prices could fall further. — Bernama-Anadolu
