July 19, 2023 (MLN): Oil prices remain mixed on Wednesday amid U.S. demand uncertainties outweighing China’s growth assurance.
Brent crude is currently trading at $79.74 per barrel, up by 0.14% on the day.
While West Texas Intermediate crude (WTI) is trading at $75.75 per barrel, up by 0.15% on the day.
"With the Fed likely to raise interest rates for the last time in July, concerns about U.S. demand that will limit oil price gains are likely to remain," said CMC Markets analyst Leon Li, as Reuters reported.
To note that CME FedWatch Tool is pricing in a 99.8% chance of an interest rate hike at the upcoming FED meeting.
Interest rates and oil demand are inversely related, as higher interest rates tend to discourage spending and investment.
However, on the positive front, China's top economic planner pledged on Tuesday it would roll out policies to "restore and expand" consumption in the world's second-largest economy, which could boost oil demand.
On the supply side, data from the American Petroleum Institute (API), an industry group, showed crude oil, gasoline, and distillate inventories all fell last week.
Meanwhile, Russia is set to reduce its oil exports by 2.1 million metric tons in the third quarter, in line with planned voluntary export cuts of 500,000 barrels per day in August, according to the energy ministry.
