PT Solid Gold Berjangka | Oil Retreats as Fed’s Rate Signal Eclipses Decline in Stockpiles
Oil fell after the Federal Reserve signaled that at least one more interest-rate hike is possible this year in its fight to subdue stubborn inflation, overshadowing signs of a tighter physical crude market.
West Texas Intermediate declined below $89 a barrel, dropping for a third day in the longest losing run in almost a month. While the US central bank left its benchmark rate unchanged at a midweek meeting, it also flagged borrowing costs will likely stay higher for longer after one more increase this year. Crude fell alongside other risk assets, including equities, while the dollar rose.
Still, official data showed oil inventories at the Cushing, Oklahoma, storage hub declined by 2.1 million barrels last week, cutting holdings to the lowest since July 2022. Stockpiles are only narrowly above the 20 million-to-22 million barrel volume that’s seen as the minimum operating level for the facility.
Crude has rallied strongly this quarter as Saudi Arabia and Russia extended their production curbs to year-end. A brightening outlook in the world’s two biggest economies — the US and China — has also bolstered prospects for prices, with a growing pool of voices floating the possibility that $100 oil will return, including at Chevron Corp. and Goldman Sachs Group Inc.
WTI for November delivery fell 0.9% to $88.88 a barrel at 11:02 a.m. in Singapore. Brent for November settlement eased 0.8% to $92.78 a barrel.
Source : Bloomberg
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