Worries about oil demand in the US are impacting prices, as the upcoming decision by the Federal Reserve on interest rates approaches
In the world of oil markets, events are unfolding at a rapid pace. On Wednesday, oil prices eased as U.S. distillate stockpiles rose and Kazakhstan resumed its oil supplies.
The resumption of Kazakhstan's oil supplies through the Baku-Tbilisi-Ceyhan pipeline, which took place on September 13, is a positive development for the global oil market. However, the impact on oil prices remains unclear.
Meanwhile, in the United States, distillate stockpiles and crude inventories have seen significant changes. Last week, U.S. crude inventories fell sharply, while distillate stockpiles and U.S. imports declined significantly. U.S. exports, on the other hand, increased.
Analysts attribute the lid on prices to the rise in distillate stockpiles, suggesting that an increase in supply has helped to keep oil prices in check.
The U.S. Federal Reserve is expected to announce a decision on interest rates later today (September 15). The outcome of this meeting, which is awaited by investors, is not yet known. If the Fed decides to cut interest rates by a quarter of a percentage point, as expected, this could weaken the US dollar, potentially supporting higher prices for oil priced in USD.
However, geopolitical tensions, such as the recent intensification of Ukraine's attacks on Russia's energy infrastructure, could counteract this effect and push oil prices upward. According to some estimates, oil prices could rise toward about $64 per barrel for WTI crude under such circumstances.
Elsewhere, Russia's oil pipeline monopoly Transneft has warned producers that they might have to cut output due to Ukraine's drone attacks on critical export ports and refineries. Three industry sources confirmed this warning to Reuters.
The Fed's September 16-17 meeting is also generating interest, but its potential impact on oil prices remains uncertain.
In summary, while the resumption of Kazakhstan's oil supplies and the rise in U.S. distillate stockpiles have helped to keep oil prices in check, geopolitical tensions and the outcome of the Fed's meetings could influence prices in the coming days.
