Crude Oil Prices Stabilise After Sharp Rally: Market Eyes U.S. Inventories and Fed Decision

On July 30,2025, Crude oil prices held steady during Asia easing after a strong rally in the previous session. Market attention shifted to a potential buildup in U.S. crude stockpiles and an imminent interest rate decision from the Federal Reserve.

Crude prices had surged earlier this week after the United States threatened sanctions on major buyers of Russian oil, aiming to intensify pressure on Moscow over its conflict with Ukraine. Optimism also emerged from progress in U.S.–EU trade negotiations, which further buoyed oil markets.

However, the bullish momentum lost steam following industry data that pointed to an unexpected rise in U.S. crude inventories. Investor caution also grew ahead of the Fed’s policy announcement, with a series of major economic data releases expected later this week adding to the subdued sentiment.

As of 20:53 ET (00:53 GMT), Brent crude futures for September edged up 0.2% to $72.68 per barrel, while West Texas Intermediate (WTI) crude rose 0.1% to $69.28 per barrel.

API Reports Surprise Crude Inventory Build

According to the American Petroleum Institute (API), U.S. crude inventories increased by 1.5 million barrels in the week ending July 25—surprising markets that had anticipated a draw of 2.5 million barrels. This marked a reversal from the modest decline reported the previous week.

The API figures often precede similar data from the U.S. Energy Information Administration, which is scheduled to release its official report later Wednesday. A sustained inventory build could signal weakening demand in the world’s largest oil-consuming nation, especially amid growing economic uncertainty.

Fed Rate Outlook and Dollar Strength Cap Gains

Traders remained cautious ahead of the Federal Reserve’s rate decision due Wednesday evening. While the central bank is widely expected to keep interest rates on hold, its economic outlook and commentary will be closely scrutinised. Strength in the U.S. dollar, as investors position ahead of the Fed’s announcement, also applied downward pressure on oil prices.

Key U.S. economic indicators—including nonfarm payrolls due Friday—could further shape market sentiment. Also on Friday, former President Donald Trump’s deadline for imposing significant trade tariffs approaches, even as Washington has secured a handful of smaller trade agreements.

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