Petroleum prices were flat Thursday ahead of an expected rate hike by the U.S. Federal Reserve, as market participants eyed falling U.S. crude stockpiles and upcoming European sanctions on Russian barrels.
Brent crude rose just eight cents, or 0.1%, to $94.73 U.S. a barrel, while U.S. West Texas Intermediate (WTI) crude was up six cents, or 0.1%, at $88.43 per barrel.
U.S. crude oil stocks fell about 6.5 million barrels for the week ended Oct. 28, according to market sources citing American Petroleum Institute figures.
Overseas, China’s zero-COVID policy has been a key factor in keeping a lid on oil prices as repeated lockdowns have slowed growth and pared oil demand in the world’s second-largest economy.
An unverified note on social media said the Chinese government was going to consider ways to relax COVID-19 rules from next March, potentially boosting demand in the world’s number-two oil user.
Meanwhile, the U.S. dollar fell from Tuesday’s highs as investors braced for the U.S. Federal Reserve’s policy decision at 2 p.m. EDT, with many hoping for signs of a slowdown in future rate hikes.
