Oil falls ahead of Fed rate decision after two-day relief rally
BNN Bloomberg
Oil fell ahead of an interest-rate decision from the Federal Reserve following a two-day rally that was driven by an easing of concerns over banking crises in the U.S. and Europe.
West Texas Intermediate futures traded near US$69 a barrel after rising almost 4 per cent over the previous two sessions, as U.S. officials studied ways they might temporarily expand protection for all deposits. Markets are pricing in a roughly 80 per cent chance that the Fed will hike rates by a quarter point on Wednesday.
The banking turmoil drove oil to a 15-month low last week and whipped up volatility across global markets. A raft of market watchers remain bullish on the outlook, in part due to China’s rebound from Covid curbs, with predictions for prices in the second half ranging between US$80 and US$140 a barrel.
