Brent Oil Dips Below $73/Barrel on Wednesday

Brent oil prices fell below $73 per barrel during early Wednesday trading, carrying the momentum of the previous session and increasing losses to more than 10% this month. The price of the barrel has been in decline, weighed on by worries over future demand. This sentiment was exacerbated by yesterday’s release of US inflation figures, which remained above the ideal levels and made it more likely for the Federal Reserve to keep interest rates higher for longer, with oil consumption likely to suffer as a consequence. Against this background, today’s Fed monetary policy decision may lead to further losses if the central bank insists on adopting a hawkish stance, talking down the chances of a rate cut within the next six months.

Ricardo Evangelista – Senior Analyst, ActivTrades