rude oil prices fell in Asian trade on Wednesday ahead of a US Federal Reserve meeting where interest rates are likely to be raised.

Oil prices fall ahead of Fed decision

NEW YORK, December 16, 2015 – Crude oil prices fell in Asian trade on Wednesday ahead of a US Federal Reserve meeting where interest rates are likely to be raised. Brent lost $0.33, settling at $38.12, while West Texas Intermediate dropped by $0.55 to $36.91 per barrel.

The global oil benchmark had come within $0.14 of a December 2008 dip of $36.20. West Texas Intermediate rose more than $1 on Tuesday but fell back on gains due to the expected outcome of the Fed meeting, which will be announced Wednesday evening in the US.

A rise in interest rates would bode negatively for oil prices because of a stronger dollar, making the dollar-denominated crude more expensive globally.

Data released by the American Petroleum Institute on Tuesday also showed a surprise increase of 2.3 million barrels in US crude stockpiles last week. A Reuters poll among analysts yielded a 1.4-million barrel estimation. Energy Information Administration will release the data on Wednesday.

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