November 03, 2023 (MLN): Global oil prices extended gains from the previous session as investors regained confidence after the U.S. Federal Reserve decided to keep interest rates unchanged.
Brent crude is currently trading at $88.67 per barrel, up by 0.28% on the day.
While West Texas Intermediate crude is trading at $82.53 per barrel, up by 0.36% on the day.
Global oil prices found support along with gains across financial assets after the Fed maintained its benchmark interest rate unchanged at 5.25%-5.50% on Wednesday.
Geopolitical concerns remained in focus, as Israeli forces on Thursday encircled Gaza City – the Gaza Strip's main city – in their assault on Hamas, the military said, but the Palestinian militant group resisted their drive with hit-and-run attacks from underground tunnels, as Reuters reported.
The White House said it was exploring a series of pauses in the Israel-Hamas conflict to help people safely exit Gaza and allow humanitarian aid to get in, but reiterated its opposition to a full ceasefire.
On the supply side, top oil exporter Saudi Arabia is expected to reconfirm an extension of its voluntary oil-output cut of 1 million barrels per day through December, analysts expect.
U.S. oil rig count data is expected later in the day and will serve an indicator of future production.
Meanwhile, the U.S. Federal delivered a 'dovish' pause to its rate hikes on Wednesday, while the BoE delivered a 'hawkish' pause on Thursday.
