Oil rallied for a third day to the highest level in more than a week, undaunted by the U.S. Federal Reserve’s determination to fight inflation with a sustained policy of rate hikes.

The jump Wednesday comes after the International Energy Agency said 2023 oil prices may rise as sanctions squeeze Russian supplies and demand beats earlier forecasts.

Prices shed some of their gains after the U.S. Federal Reserve raised rates by 50 basis-points. Broader markets shied away from risky-assets after the central bank reiterated that inflation in the U.S. remains elevated and higher rate hikes in the future were not ruled out.

Still, crude is on track for its first back-to-back quarterly decline since 2019 as concerns about a global economic slowdown persist. Goldman Sachs Group Inc. was among those to trim their outlooks for next year.


  • WTI for January delivery rose US$1.89 to settle at US$77.28 New York.
  • Brent for February increased US$2.02 to US$82.66 a barrel.

Wednesday’s rally defied some bearish headlines. Among them: U.S. crude stockpiles rose more than 10 million barrels last week, the most since March 2021, according to the Energy Information Administration. The inventory build came after TC Energy shut its massive Keystone oil pipeline due to a leak. News that the company was planning a partial restart of the line Wednesday, followed by full resumption Dec. 20, has weighed on prices at times.