The Federal Reserve maintains interest rates unchanged as the market focuses on economic growth expectations

The Federal Reserve announced on Wednesday that it will keep interest rates unchanged, while lowering its forecast for US economic growth in 2025, but raising its inflation forecast. The market generally believes that this indicates that the Federal Reserve will maintain a cautious stance before deciding to cut interest rates.

Federal Reserve Chairman Jerome Powell emphasized at a press conference that the US economy is facing high levels of uncertainty, including President Trump's policy adjustments and their impact on the global economy. Investors are concerned about the future economic growth prospects, which may indirectly affect energy demand expectations.

EIA Inventory Report: Significant Decrease in Fuel Inventory

The data released by the US Energy Information Administration (EIA) on Wednesday showed a significant decrease in US fuel inventories, reflecting robust demand

Gasoline inventories decreased by 6.7 million barrels, reaching the lowest level of the year, far exceeding the market's expected decrease of 3.5 million barrels.

The inventory of distillate oil (including diesel) decreased by 4.3 million barrels, also exceeding market expectations.

The crude oil inventory in the Cushing region has decreased by 1 million barrels, indicating signs of tight crude oil supply.

The decline in US refined oil inventories indicates strong demand, especially as the spring driving season approaches, which helps support oil prices, "said energy analyst John Kilduff.

Geopolitical risks are rising, and there is still uncertainty on the supply side of the market

Global geopolitical tensions continue to escalate, increasing uncertainty in crude oil supply

The progress of the Russia Ukraine peace talks is slow, and market concerns about the ongoing conflict are intensifying.

The Middle East ceasefire negotiations have not reached a breakthrough, which may affect the oil supply in the region.

The United States has recently imposed new sanctions on some countries, which may disrupt the global energy market.

OPEC+plans to increase production, limiting upward space for oil prices

Despite recent support from strong demand and declining inventory, OPEC+plans to increase production from April, which may exacerbate supply pressure and curb further price increases. In addition, trade concerns still exist, which may affect the outlook for global crude oil demand.

Market Outlook: Oil Price Trends Still Affected by Multiple Factors

Overall, the decline in fuel inventories and geopolitical risks provide short-term support for oil prices, but OPEC+production plans and a slowdown in global economic growth may limit the upward space for oil prices. At present, the technical level is only in a state of oversold correction. If it cannot break through the previous rebound high, it will continue to fluctuate within the range and wait for new changes in fundamentals.