The price of oil fell after the decision of the US Federal Reserve on rates

On Wednesday, June 15, Brent crude fell 1.81% to $118.85. Most of the time, the price was trading at $120.50 per barrel. The market even sluggishly reacted to the report of the US Department of Energy.

According to the data provided by the agency, oil reserves in the country increased by 1.96 million barrels last week, to 418.71 million barrels (Bloomberg's forecast was -2.2 million barrels). Inventories of gasoline decreased by 710 thousand barrels (the forecast was +500 thousand barrels), distillates - increased by 725 thousand barrels (the forecast was -500 thousand barrels).

After the announcement of the decision of the US Federal Reserve, the price fell to $117.73. Perhaps buyers are afraid of a slowdown in the US economy due to aggressive rate hikes.

The Fed raised rates by 75 basis points to 1.75%. Powell said the current pace of rate hikes is appropriate and could be 50 or 75 basis points at the next meeting.

On Thursday, June 16, at auction in Asia, a Brent barrel costs $119. In general, the technical picture is still favorable for buyers. Speculators are buying back the falls in anticipation of further growth to the level of 135 per barrel. The bullish momentum will begin to fade if the day and week close below $117/bbl.