Brent Makes Modest Gain Amid OPEC Speculation

Brent crude oil made its way higher on Wednesday as investors became more cautious about the outcome of the Fed meeting, and many began to speculate that OPEC will cut its output in the face of falling prices. The commodity traded at $98.88 at 10:40 GMT, still plagued by the global supply glut.

Brent prices fell to a more than two-year low this week after data from some of the world’s largest consumers suggested that demand would continue to struggle. However, prices found some support after OPEC Secretary General Abdullah al-Badri commented that the group may decrease its output by 500,000 barrels per day in 2015.

The organization is set to meet in November, where many believe a supply cut is necessary as most nations need prices to be above $100 in order to balance their budgets. CNBC reported that many analysts see Saudi Arabia cutting down on supply in order to help lift prices as Brent will likely remain depressed until demand picks up.

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Moving forward, investors will be keeping a close eye on the Federal Reserve as the U.S. central bank wraps up its two-day policy meeting. While speculation leading up to the meeting pointed to the bank hinting at a sooner than expected rate cut, on Tuesday investors became more cautious, worried that the bank will strike a more dovish tone. In any case, the focus will be on the Fed’s statement following the meeting and whether or not the bank rewords its forward guidance to reflect the possibility of an early rate hike.

Meanwhile, investors will also be watching the U.K., as a vote for Scottish independence is set to take place on Thursday. The polls were very close ahead of the referendum, with those opposed gaining a slight edge days before the vote, but nearly 10 percent of voters have said they are undecided.