Oil steadies as focus shifts to US stockpiles and Fed’s decision

Oil steadied after a two-day gain as an industry group flagged a fall in US crude stockpiles, and traders counted down to an interest-rate decision by the Federal Reserve.

Brent was little changed above $87 a barrel after a 2.4% advance in the week’s first two sessions lifted the benchmark to the highest close since late October. West Texas Intermediate was near $83. The American Petroleum Institute reported US crude holdings fell 1.5 million barrels, according to people familiar with the figures. The group also saw a sizable drop in gasoline inventories.

The US central bank is expected to hold rates steady for a fifth consecutive meeting later Wednesday, although policymakers may give hints about when they will be ready to pivot to easing. Carlyle Group LP’s Jeff Currie said oil would rise well above the current consensus for $70 to $90 a barrel if the Fed cuts interest rates in the coming months.