Oil prices were mixed on Wednesday, with Brent inching higher while WTI slipped, as cautious remarks from US Federal Reserve (Fed) Chair Jerome Powell and supply concerns offset pressure from global market uncertainty.
Brent crude was trading at $67.32 per barrel at 10.43 a.m. local time (0743 GMT), up 0.1% from the previous close of $67.25.
While, US benchmark West Texas Intermediate (WTI) decreased by 0.15% to $63.64 from $63.74 in the prior session.
Powell said Tuesday that equity prices are “fairly highly valued,” adding that the Fed assesses overall financial conditions to gauge policy effectiveness.
In a speech in the northeastern state of Rhode Island, the Fed chair was questioned if he and his colleagues have a greater tolerance for higher values and how much weight they lay on market pricing.
"We do look at overall financial conditions, and we ask ourselves whether our policies are affecting financial conditions in a way that is what we're trying to achieve," Powell said. "But you're right, by many measures, for example, equity prices are fairly highly valued."
Falling US crude inventories, rising geopolitical risks and easing oversupply concerns limited the decline in prices.
The American Petroleum Institute said US crude stocks fell by 3.82 million barrels last week, more than the 3.42 million-barrel drop expected by analysts.
The larger-than-expected decline points to stronger demand in the world's biggest consumer, helping limit the fall in oil prices. Official data from the US Energy Information Administration is due later Wednesday.
Rising geopolitical risks are also supporting prices by stoking supply concerns.
US President Donald Trump gave an unusually upbeat assessment of Ukraine's battlefield performance Tuesday, saying Kyiv's forces have far surpassed expectations, as he met President Volodymyr Zelenskyy.
"Ukraine is doing a very good job of stopping this very large army. It's pretty amazing. You know, this is a war that should have ended in three days, four days," Trump said on the sidelines of the UN General Assembly in New York, reflecting conventional wisdom from the start of the war in February 2022.
He expressed approval of NATO countries shooting down Russian aircraft if they violate their airspace in response to a corresponding question.
These remarks lend upward support to oil prices by raising the risk of new sanctions and fueling supply concerns in the market.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr
