Oil pares gain in rangebound trading ahead of Fed decision
BNN Bloomberg
Oil traded near US$88 a barrel ahead of a Federal Reserve interest rate decision and after an industry report pointed to another big decline in U.S. crude inventories.
West Texas Intermediate futures pared an earlier gain to trade little changed with prices stuck in a US$12 band over the last month. The American Petroleum Institute reported crude stockpiles shrunk by 6.53 million barrels last week, according to people familiar with the data.
The market will be keenly watching an interest-rate decision from the Federal Reserve later Wednesday to gauge the outlook for demand. The central bank is expected to raise rates by 75 basis points for the fourth time in a row. As traders look for clues about the pace of economic growth, container shipping giant Maersk said Europe was close to a recession.
