Oil prices fell in Asia on Wednesday as the prospect of a delay in a U.S. interest rate cut and rising U.S. crude inventories outweighed the support prices received on Tuesday from news that OPEC+ may extend production cuts.
Brent crude futures fell 30 cents, or 0.36 percent, to $83.35 a barrel by 0302 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 28 cents to $78.59 a barrel.
Federal Reserve Board member Michelle Bowman said Tuesday she was in no rush to cut U.S. interest rates, especially given the upside risks to inflation that could hamper progress in controlling price pressures or even lead to their resurgence.
Three OPEC+ sources told Reuters that the alliance will consider extending voluntary oil production cuts into the second quarter of 2024 to provide additional support to the market, and two of them said it may keep the cuts until the end of the year.
OPEC and its allies led by Russia agreed in November to voluntary cuts totaling about 2.2 million barrels per day during the first quarter of this year, which included Saudi Arabia extending its voluntary production cut.
