The search for balance in oil

Oil prices settled after two days of gains as U.S. crude inventories pointed to a decline and investors counted down the clock on the Federal Reserve’s interest-rate decision, which will shape the market. Brent crude was little changed above $87 a barrel after a 2.4 percent gain in the first two sessions of the week lifted the benchmark to its highest close since late October. U.S. crude was near $83. The American Petroleum Institute reported that U.S. crude inventories fell by 1.5 million barrels, according to people familiar with the figures. Gasoline stocks also narrowed. The U.S. Federal Reserve is expected to hold interest rates steady at its fifth straight meeting later Wednesday, but policymakers could give clues about when they are ready to ease. Jeff Currie of Carlyle Group LP said oil could rise above $70 to $90 a barrel if the Fed moves to cut rates in the coming months. Crude is up about 13 percent this year. The advance was supported by geopolitical risks, including supply cuts by OPEC+ and drone attacks on Russian refineries by Ukraine. Generally positive growth data from China earlier this week also led to gains.