Oil stabilizes as markets await the decisions of Fed and OPEC

Oil prices were generally stable on Wednesday as markets awaited the meeting of OPEC and its allies, the Federal Reserve’s decision on interest rates, and US government data on crude and fuel inventories.

Brent crude futures fell 11 cents, or 0.1 percent, to $85.35 a barrel by 0949 GMT, while West Texas Intermediate crude futures rose eight cents, or 0.1 percent, to $78.95 a barrel.

The US central bank is expected to announce its decision today, Wednesday, at 1900 GMT.

Attention will turn to the meeting to be held on Wednesday by the Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia, in the framework of what is known as OPEC +, as it is expected that the producing countries will maintain the production levels agreed upon in November.

A survey conducted by Reuters showed that OPEC oil production declined in January with a decline in Iraqi exports and the failure to recover production from Nigeria, as the production of ten OPEC member countries decreased by 920 thousand barrels per day from the quantities targeted under the OPEC + agreement.

This deficit is greater than that of December, which amounted to 780 thousand barrels per day.

According to market sources, data from the American Petroleum Institute showed that US inventories of crude oil rose by about 6.3 million barrels, more than expected, in the week ending January 27.

Inventory data from the US government is due at 1530 GMT.