Brent dented after US Fed meeting

The front-month ICE Brent contract has declined by $1.01/bbl on the day, to trade at $61.75/bbl at 09.00 GMT.

IMAGE: Oil drum barrels. Getty Images

Upward pressure:

Brent has drawn some support after the US Energy Information Administration (EIA) reported a drop is US crude stocks.

Commercial US crude oil inventories declined by 2 million bbls to touch 438 million bbls for the week ending 2 May, according to data from the EIA. The latest EIA data “leaves crude oil inventories at their lowest level since March,” two analysts from ING Bank noted.

A drop in US crude stocks typically indicates higher demand and can lend some support to Brent's price.

Besides, fresh developments in the US-China trade dispute provided some support to Brent. US treasury secretary Scott Bessent is set to meet with a top Chinese official in Switzerland on 10 May to continue negotiations over the tariff war that has disrupted global trade.

Downward pressure:

Brent’s price slumped after the US Fed’s policy meeting, as the market found little reason for optimism over demand growth.

In a largely anticipated move, the US Federal Open Market Committee (FOMC) maintained its key interest rate at a range between 4.25-4.50%.

The news follows mounting tensions among global trade partners amid the ongoing US tariff dispute and growing concerns over oil demand. 

“It was a sea of red across commodities as news that the Federal Reserve left US interest rates on hold, and signs it's likely to remain there,” ING Bank analysts said.

Aparupa Mazumder

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