Oil advanced, tracking gains in wider Asian equity markets, after US crude inventories declined and the Federal Reserve indicated that any more rate hikes would be data-dependent.
West Texas Intermediate traded above $79 a barrel, rising for the fifth time in six sessions, as benchmark stock indexes in Hong Kong and Australia climbed. There’s growing speculation the Fed is nearing the end of its monetary tightening cycle, after it raised interest rates for the 11th time since March.
US equities advanced after the decision, suggesting traders are expecting a slowing of the most aggressive tightening campaign since the 1980s. The dollar also weakened despite the move, with a Bloomberg gauge of the greenback on its third day of declines, making commodities cheaper for most international buyers.
Read the full story on Bloomberg here.