Oil rises as market awaits Fed interest rate decision

Oil prices rose on Wednesday after bullish oil demand growth forecasts from the International Energy Agency (IEA) and OPEC and as investors awaited the outcome of the U.S. Federal Reserve’s June meeting.

Brent crude futures were up 95 cents, or 1.3%, at $75.24 a barrel by 1346 GMT. U.S. West Texas Intermediate (WTI) crude was up 90 cents, or 1.3%, at $70.32.

Both benchmarks climbed more than 3% the previous day on expectations of rising fuel demand after China’s central bank lowered a short-term lending rate.

Market participants expect the U.S. central bank’s Federal Open Market Committee (FOMC) to pause interest rate hikes because of uncertainty over the economic outlook and the effects of 10 rate increases since March 2022.