Oil rises over 1% after Fed keeps rates unchanged

Oil gained more than 1% on Thursday to snap its three-day decline, as risk appetite returned to financial markets after the U.S. Federal Reserve kept benchmark interest rates on hold, Reuters reported.
Brent crude futures rose 89 cents, or 1.1%, to $85.52 a barrel by 0324 GMT, while U.S. West Texas Intermediate crude futures advanced 91 cents, also 1.1%, to $81.35 a barrel.
Both benchmarks settled at their multi-week lows in the previous session.
Oil’s rally comes along with gains across financial assets after the Fed maintained its benchmark interest rate unchanged at 5.25%-5.50% at its latest meeting on Wednesday.
Policymakers struggled to determine whether financial conditions may be tight enough already to control inflation, or whether an economy that continues to outperform expectations may need still more restraint.
Investors are also watching for development in the Middle East which has kept investors on edge about whether it could disrupt oil supplies around the region.
Market participants awaited a Bank of England meeting, expected Thursday. In Europe, October inflation in the Euro zone was at its lowest in two years, a Eurostat flash reading showed, stoking the view the European Central Bank is unlikely to hike interest rates soon.
J.P. Morgan analysts estimated global oil demand averaged 102.1 million barrels-per-day (bpd) in October, about 100,000 bpd below their previous projection for the month.
Data from U.S. Energy Information Administration (EIA) showed that the country’s crude stocks increased as refiners undergoing seasonal maintenance restarted units more slowly than expected.
But despite lower refining runs, U.S. gasoline stocks rose by 0.1 million barrels in the week to 223.5 million barrels, the EIA said.