June 25, 2024

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Oil Steadies After Two-Day Rally Ahead of Fed Rate Decision

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(Bloomberg) — Oil edged lower ahead of a decision on monetary policy from the Federal Reserve after rallying 6% over the previous two sessions.

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West Texas Intermediate futures slipped toward $75 a barrel in early Asian trading. US consumer prices posted the smallest monthly gain in more than a year on Tuesday, indicating the worst of inflation has likely passed and sparking hopes the Fed will ease the pace of its interest rate rises. 

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Crude is still on track for its first back-to-back quarterly decline since 2019 on concerns about the global economy. Goldman Sachs Group Inc. trimmed its oil price forecasts for early next year due to a weak outlook, while OPEC reduced estimates for the amount of crude it will need to pump in the coming months.

The International Energy Agency will provide a snapshot on the oil market later Wednesday with the release of its monthly report.

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TC Energy Corp. is targeting a partial restart of a segment of the Keystone oil pipeline on Wednesday and full resumption on Dec. 20, according to people familiar with the matter. Bad weather has hampered restart efforts.

The industry-funded American Petroleum Institute reported US commercial crude inventories rose by 7.82 million barrels last week, according to people familiar with the figures. Stockpiles at the key oil storage hub at Cushing, Oklahoma, as well as supplies of gasoline and distillates also gained.

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