WTI Oil Prices Hold Steady Amid Fed Rate Hike
The price of WTI oil remains near its daily low on Wednesday, showing little reaction to the Federal Reserve's monetary policy announcement. The Fed raised the federal funds target range by 25 basis points to 3.75%-4.00%, with a median year-end rate at 4.1% indicating one more quarter-point increase this year.
Oil prices barely moved following the announcement as the rate hike was already priced in, but higher borrowing costs and a stronger US Dollar could weigh on economic activity and future energy demand.
The market remains focused on Middle East supply risks, with shipping through the Strait of Hormuz heavily restricted due to security concerns. Saudi Aramco is reportedly working to partially restore its East-West pipeline within days after last week's drone attack, allowing Saudi Oil exports to bypass the Strait of Hormuz.