Oil prices inched up slightly in Asian morning trade on Wednesday as investors awaited the outcome of the US Federal Reserve’s June meeting, key economic data from China and government data on US crude stockpiles.

Brent crude futures LCOc1 were up 9 cents, or 0.1%, at $74.38 a barrel. US West Texas Intermediate (WTI) crude CLc1 was at $69.43 a barrel, up 1 cent.

Market participants expect the US central bank’s Federal Open Market Committee (FOMC) will pause rate hikes amid uncertainty on both the economic outlook and the lagged effects of 10 rate hikes since March 2022.

Rate hikes strengthen the dollar, making commodities denominated in the US currency more expensive for holders of other currencies, and weigh on oil prices. A pause in hikes would spur economic growth and oil demand, supporting prices.

Source: Qatar News Agency