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MTECHTIPS:-Oil falls in volatile trade ahead of Fed rate decision

MTECHTIPS:-Oil falls in volatile trade ahead of Fed rate decision

Brent and U.S. crude futures fell on Thursday in volatile trading as investors awaited the Federal Reserve’s interest rate decision later in the day. The U.S. central bank will have an announcement at 2 p.m. EDT, which could signal the first U.S. interest rate rise for a decade. Economists saw about a one-in-four chance of a rate increase. The dollar eased ahead of the announcement. A weaker U.S. currency can be supportive to dollar-denominated commodities like oil. Oil futures felt pressure on Thursday after weak Japanese data revived fears over the prospects for global growth. Japan’s exports slowed a second straight month in August, a sign that China’s economic slowdown could be damaging the world’s third-biggest economy. The Japanese figures follow worrying data from other Asian economies, including South Korea and Taiwan, creating anxiety over possible effects of slower growth in China. “Brent structure has been appreciably weaker than that of WTI (U.S. crude) as it remains much more sensitive to the bearish element of increasing availability of North Sea barrels, excessive OPEC output and Chinese economic concerns,” Jim Ritterbusch, president at Ritterbusch & Associates, said in a note.

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