Oil prices remained largely unchanged as investors awaited the Federal Reserve’s interest rate decision, a key factor that could influence economic growth and demand for energy. Brent crude hovered near $84 per barrel, while U.S. West Texas Intermediate (WTI) traded close to $79, signaling market caution.
The Federal Reserve’s stance on interest rates will be pivotal. Higher rates tend to strengthen the U.S. dollar, making oil more expensive for global buyers, potentially denting demand. Conversely, a pause or dovish outlook could provide support for oil prices as borrowing costs remain stable. Analysts suggest the Fed’s decision may reinforce existing uncertainties surrounding sluggish global demand and economic headwinds.
Investors are also monitoring supply-side developments, with ongoing tensions in the Middle East and production trends from OPEC+. However, the looming Federal Reserve announcement remains the primary driver of near-term oil market sentiment.
