Oil turned to decrease on the statistics of stocks in the US

MOSCOW, Sep 21 — PRIME. In the late afternoon, world oil prices began to decline, after a daily increase of about 2%, in anticipation of a meeting of the US Federal Reserve System (FRS), as well as on the statistics of stocks of this type of raw material, follows from the trading data and expert comments.

As of 18.11 Moscow time, the price of November futures for Brent crude oil is reduced by 1.24%, to $89.5 per barrel, and November futures for WTI — by 1.38%, to $82.78.

Later on Wednesday, the results of the next meeting of the Fed are expected. Traders believe that the regulator will raise the refinancing rate again to fight inflation. Thus, 82% of analysts surveyed by CME Group expect the rate to rise immediately by 0.75 percentage points, to 3-3.25% per annum.

Investors fear that a sharp increase in discount rates in the countries of the world will lead to a slowdown in economic growth and a decrease in global energy demand. In addition, the expected rate hike strengthens the dollar, which is now rising against other major world currencies. The appreciation of the US currency is holding back demand for commodities, including oil, as it becomes less available for purchase in other currencies.

Also earlier on Wednesday, the statistics of commercial oil reserves in the United States were published – for the week to September 16, they increased by 1.1 million barrels and amounted to 430.8 million. And the prices for “black gold” reacted to this with an additional decline.

“Macro factors are certainly at play right now with bank rates and the dollar holding back the price of crude oil,” Rebecca Babin, senior energy trader at CIBC Private Wealth Management, told Bloomberg.