Oil prices started the month with a moderate decline

The price of oil on the first day of the month shows a decline, as investors are cautious ahead of the US Federal Reserve meeting on Wednesday. The current Brent oil quote is $78.60 per barrel, WTI oil is trading near $76.70. 

On Wednesday, the Federal Reserve will announce its decision on the rate, and the head of the regulator Jerome Powell can share hints on further monetary policy in the United States, which is important for all financial and commodity markets. It is expected that the refinancing rate will be increased from 5.00% to 5.25%, which will give the US dollar an upward momentum.

And if Jerome Powell does not rule out the possibility of a further increase in interest rates, then the strengthening of the dollar will be quite large-scale. Otherwise, it will be of a more modest nature. In any case, the oil market will be under pressure. 

Macro statistics from China, one of the largest importers and consumers of oil, had an additional impact on the dynamics of commodity quotations. The business activity index (PMI) in the industrial sector of the country fell below the neutral mark – to 49.2 points from 51.9 points in March, and in the non-manufacturing sector – to 56.4 points from 58.2 points.