Oil falls ahead of Fed

Oil prices fell, becoming further away from their highest levels in ten months on Wednesday, ahead of the announcement of the Federal Reserve’s decision on the interest rate, amid a state of uncertainty among investors about when interest rates will reach their peak and the extent of this impact on energy demand.

Prices fell despite a larger-than-expected draw in US oil inventories and weak US shale oil production, indicating tighter crude supplies in the remainder of 2023.

Brent crude futures fell by slightly more than a dollar to $93.33 per barrel, and in the latest trading fell 80 cents, equivalent to 0.8 percent, to $93.54 per barrel by 0310 GMT. Brent hit $95.96 on Tuesday, its highest level since November.

US West Texas Intermediate crude futures fell 0.8 percent, or 75 cents, to $90.45 a barrel, after rising to a ten-month high of $93.74 a barrel the previous day.

Investors are awaiting a set of interest rate decisions from central banks this week, including the US Federal Reserve’s decision on Wednesday, to assess the outlook for economic growth and fuel demand.

The Federal Reserve is largely expected to keep interest rates unchanged, but the focus will be on its policy path, which is unclear.