Brent slips after Federal Reserve holds rates

Brent crude edged lower on 29 Oct 2026 after the US Federal Reserve maintained its key interest rate at 3.75%-4% at the October FOMC meeting. The decision followed a rate increase in September, the first since 2023, as the central bank continued to address persistent inflation. The Fed also cited geopolitical developments as a source of elevated uncertainty.

The unchanged rate decision can weigh on oil demand expectations because higher US borrowing costs may slow economic activity and make dollar-denominated commodities more expensive for buyers using other currencies. The backdrop remains complicated by the deepening US-Iran conflict, which has severely disrupted commercial shipping through the Strait of Hormuz. Energy markets are therefore balancing demand pressure from restrictive monetary policy against supply and logistics risks in a critical oil transit corridor ⚡.

Key points:

• The Fed held rates at 3.75%-4%, broadly matching market expectations, according to the source article.

• Bharat Petroleum closed at ₹289.20 on 29 Oct, up 0.8% for the session, while its 20-session move remained negative at 6.3%. OI Charts data showed futures open interest down 0.1%, indicating short covering. Its options market showed a put-call ratio of 0.96, with max pain at ₹295 and the largest call and put open interest both at ₹300.

• Indian Oil closed at ₹130.41, up 0.2% on the day. OI Charts data showed a 0.3% increase in futures open interest, indicating long build-up, while the put-call ratio was 1. Max pain stood at ₹132, and the largest call and put open interest were both at ₹150.

The contrasting futures positioning suggests that the two oil-marketing stocks had different near-term derivatives setups despite the same crude-market backdrop. Bharat Petroleum’s short covering coincided with a five-session decline of 1.7%, while Indian Oil gained 0.1% over five sessions. Both stocks remained below their 52-week highs, keeping crude prices, currency movements and domestic fuel-market signals relevant for the sector 💼.

The next market focus is the effect of the Fed decision on the US dollar and demand expectations, alongside developments around shipping through the Strait of Hormuz. The November futures and options expiry for both stocks is 23 Nov 2026, with the ₹295-₹300 zone important for Bharat Petroleum and ₹132-₹150 for Indian Oil based on OI Charts data.

Source: engine.online, 29 Oct 2026

Not investment advice. For informational purposes only.