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Oil prices witnessed a decline on Thursday, responding to the potential of an interest rate hike signaled by Federal Reserve officials. The decreased 1.2% to $92.40 per barrel, while the West Texas Intermediate (WTI) dropped 1.3% to $88.57 per barrel.

This downturn marks the second consecutive day of losses for both Brent and WTI, following a substantial surge in prices over the past weeks. Market analysts have been engaged in discussions over whether this upward trend would persist or if profit-taking actions would put a cap on the rally.

The Federal Reserve’s decision has heightened the focus of traders on consolidation. While this move could potentially raise demand concerns for 2024, a statement released by Saxo indicates that market tightness is expected to persist in the near term.

With this shift in Federal Reserve policy, it remains unclear how future oil prices will be impacted. As it stands, it is uncertain whether the recent downward trend will continue or reverse due to these macroeconomic factors.

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