Oil rises as market awaits Fed interest rate decision

Oil prices rose after forecasts from the International Energy Agency and OPEC predicted bullish oil demand growth. Brent crude futures were up 1.3% at $75.24 a barrel, and US WTI crude was up 1.3% at $70.32 a barrel. China’s central bank lowering short-term lending rates also supported market speculation of rising fuel demand. The Federal Open Market Committee’s decision to pause interest rate hikes also suggests interest rates will support oil demand and, therefore, prices. In addition, the IEA forecasted an increase in oil demand growth by 200,000 barrels per day to 2.4 million barrels per day this year.