Oil prices fell on Monday, giving up earlier gains, as global producers will likely keep output unchanged during a meeting this week and investors are cautious ahead of a U.S. Federal Reserve meeting that may spur market volatility.
Brent crude futures fell 74 cents, or 0.8%, to $85.92 a barrel by 0710 GMT while U.S. West Texas Intermediate crude was at $79.07 a barrel, down 61 cents, or 0.8%.
Ahead of the Federal Reserve’s policy meeting scheduled on Jan. 31-Feb. 1, the market broadly expects the U.S. central bank to raise interest rates by at least 25 basis points, increasing concerns that the Fed’s extended increases in borrowing costs will choke fuel demand growth in the world’s biggest oil consumer.
Oil prices “are likely being weighed down by potential interest rate hikes in the upcoming Fed meeting,” said Serena Huang, head of APAC analysis at Vortexa, in an email.
Ministers from the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, known collectively as OPEC+, are unlikely to tweak their current oil output policy when they meet virtually on Feb. 1.
Still, an indication of a rise in crude exports from Russia’s Baltic ports in early February caused Brent and WTI to post their first weekly loss in three last week.
This report’s information was first seen on REUTERS; to read more, click this link.
