Investing.com- Oil futures rose slightly in Wednesday’s Asian session, building on the modest gains accrued during Tuesday’s U.S. trading as traders await news from the conclusion of Federal Reserve meeting and the get-together of the Organization of Petroleum Exporting Countries (OPEC) later today.
In Asian trading Wednesday, light, sweet crude futures for January delivery traded on the New York Mercantile Exchange gained 0.17% to USD85.94 per barrel. The contract traded as high as USD96 and as low as USD85.64 per barrel.
In U.S. trading Tuesday, the contract closed at USD85.73 a barrel on Tuesday, up 0.20%, off from a session high of USD86.36 and up from an earlier session low of USD85.22. West Texas Intermediate got a lift following some decent German economic data.
The ZEW index of German economic sentiment rose by 22.6 points to 6.9 in December, from a reading of -15.7 in November and the first positive reading since May.
Analysts were expecting a -12.0 reading. Germany, the Eurozone’s largest economy, is also Europe’s largest oil consumer.
Now traders will turn their attention to the conclusion of the Fed’s last monetary policy meeting of the year. An interest rate cut is unlikely and the central bank has already pledged to keep rates low through mid-2015. However, traders of riskier assets are hoping the Fed will announce additional bond-buying efforts, particularly with the end of Operation Twist looming later this month.
If the Fed does not deliver good news on the monetary easing front, commodities could be vulnerable, particularly if the U.S. dollar spikes.
Meanwhile, traders will also be eying the OPEC meeting in Vienna later today. Saudi Arabia, the cartel’s biggest producer, is content with oil prices as they stand. However, other OPEC members may push for a production reduction to increase prices. Still, traders view an alteration to the 30 million barrel per day OPEC currently has in place as unlikely.
Elsewhere, Brent crude for February delivery traded on the ICE Futures Exchange slipped 0.01% to USD106.92 per barrel.
In Asian trading Wednesday, light, sweet crude futures for January delivery traded on the New York Mercantile Exchange gained 0.17% to USD85.94 per barrel. The contract traded as high as USD96 and as low as USD85.64 per barrel.
In U.S. trading Tuesday, the contract closed at USD85.73 a barrel on Tuesday, up 0.20%, off from a session high of USD86.36 and up from an earlier session low of USD85.22. West Texas Intermediate got a lift following some decent German economic data.
The ZEW index of German economic sentiment rose by 22.6 points to 6.9 in December, from a reading of -15.7 in November and the first positive reading since May.
Analysts were expecting a -12.0 reading. Germany, the Eurozone’s largest economy, is also Europe’s largest oil consumer.
Now traders will turn their attention to the conclusion of the Fed’s last monetary policy meeting of the year. An interest rate cut is unlikely and the central bank has already pledged to keep rates low through mid-2015. However, traders of riskier assets are hoping the Fed will announce additional bond-buying efforts, particularly with the end of Operation Twist looming later this month.
If the Fed does not deliver good news on the monetary easing front, commodities could be vulnerable, particularly if the U.S. dollar spikes.
Meanwhile, traders will also be eying the OPEC meeting in Vienna later today. Saudi Arabia, the cartel’s biggest producer, is content with oil prices as they stand. However, other OPEC members may push for a production reduction to increase prices. Still, traders view an alteration to the 30 million barrel per day OPEC currently has in place as unlikely.
Elsewhere, Brent crude for February delivery traded on the ICE Futures Exchange slipped 0.01% to USD106.92 per barrel.