Oil Stable Amid Market Anticipation for U.S. Interest Rate Forecasts

Oil prices rose slightly in Asian trading on Wednesday morning as investors await the outcomes of the Federal Reserve's meeting for June, key economic data from China, and government reports on U.S. crude inventories. Brent crude futures increased by nine cents, or 0.1%, to $74.38 per barrel. West Texas Intermediate crude added one cent to $69.43 per barrel. Market participants expect the Federal Open Market Committee of the U.S. Federal Reserve to pause interest rate hikes temporarily, amid uncertainty regarding economic outlooks and the ongoing impacts of ten rate increases since March 2022. A rise in interest rates supports the dollar, making dollar-denominated commodities more expensive for holders of other currencies, which in turn affects oil prices. A halt in rate increases could stimulate economic growth and demand for oil, thereby supporting prices.