Oil prices see slight rise ahead of key central bank meetings

Oil prices saw a modest increase on Wednesday, in anticipation of important global central bank meetings, including a session by the US Federal Reserve. According to the American Petroleum Institute, US crude oil inventories experienced an increase of 1.3 million barrels last week. Meanwhile, lingered near a three-week low at $85 per barrel, and WTI crude was nearing a month’s low at approximately $81.

October proved to be the worst month for Brent crude since August 2022, recording a 10% drop. On the other hand, Eurozone inflation decreased to a two-year low at 2.9% in October. The Bank of England is set to meet on Thursday.

In China, factory activity contracted unexpectedly in October as indicated by the Caixin/S&P Global manufacturing PMI, leading to concerns about the pace of economic recovery. Despite these concerns, Goldman Sachs maintains an optimistic outlook, forecasting Brent prices to reach $100 per barrel by June next year.

The start of November saw Spot and Futures gold and LME prices dip due to a strong and disappointing Chinese manufacturing data. This marks the third consecutive monthly loss for copper. Contrarily, Chile reported an increase in copper output in September with a total production of 457,393 tons, marking a 4.1% YoY growth.

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