{"id":6141,"date":"2023-06-21T12:30:19","date_gmt":"2023-06-21T12:30:19","guid":{"rendered":"http:\/\/roydadnaft.ir\/English\/?p=6141"},"modified":"2023-06-21T12:35:44","modified_gmt":"2023-06-21T12:35:44","slug":"oil-holds-steady-ahead-of-powells-congressional-testimony","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/6141\/","title":{"rendered":"Oil holds steady ahead of Powell’s congressional testimony"},"content":{"rendered":"
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Roydad Naft News Agency – Oil prices stabilised on Wednesday ahead of Federal Reserve Chair Jerome Powell’s congressional testimony later in the day and as data showing British inflation remained sticky raised the possibility of a hawkish Bank of England policy decision this week.<\/p>\n\n\n\n

Brent futures slipped 10 cents, or 0.13%, to $75.80 a barrel by 1159 GMT and U.S. West Texas Intermediate (WTI) crude futures edged down 8 cents, or 0.11%, to $71.11.<\/p>\n\n\n\n

British inflation defied expectations that it would slow and held at 8.7% in May,\u00a0data showed on Wednesday, boosting expectations that the Bank of England will\u00a0raise interest rates\u00a0by a hefty half a percentage point on Thursday.<\/p>\n\n\n\n

“Countries are struggling to rein in inflation… and that’s going to dampen growth and threaten recessions across the globe,” said Craig Erlam, senior markets analyst at OANDA.<\/p>\n\n\n\n

The main market focus is on Fed officials due to speak later in the day, with Chair Powell’s congressional testimony on the economy on Wednesday and Thursday the highlight.<\/p>\n\n\n\n

Two Fed policymakers and an economist nominated to join them on the central bank’s Washington-based board on Tuesday said their focus is on\u00a0bringing down\u00a0too-high inflation so that the U.S. economy can get back to sustainable growth, which could bolster oil demand.<\/p>\n\n\n\n

However, should Powell prompt a hawkish return of rate cut expectations, the U.S. dollar could see some support, ING strategist Francesco Pesole said in a note.<\/p>\n\n\n\n

A stronger U.S. dollar is bearish for oil as it makes commodities more expensive for holders of other currencies.<\/p>\n\n\n\n

Oil prices drew some support from a possible drawdown in U.S. crude stocks, with Reuters poll among five analysts estimating that crude stockpiles fell by about 400,000 barrels on average in the week to June 16.<\/p>\n\n\n\n

Official U.S. oil inventory data from the American Petroleum Institute industry group will be released later on Wednesday and the Energy Information Administration on Thursday, with both reports delayed by a day following the Juneteenth public holiday on Monday.<\/p>\n

Updated on