Wall Street remained subdued on Monday in anticipation of the Fed’s interest rate decision

Wall Street is waiting for the Fed to decide on interest rates on Wednesday, although there is a 99 percent chance that rates will not rise.Photo: Caro / Muhs

While US markets rallied at midday, the gains faded by the end of the day, and indices ended Monday in a rare steady green: the S&P 500 +0.07%, the Dow Jones Industrial Average +0.02% and the Nasdaq Composite +0.01%.

The day was marked primarily by the fact that oil approached $95 per barrel, which creates inflationary pressure just as policymakers prepare for crucial Fed meetings. A three-week rally in oil prices has pushed benchmark Brent up 11%, complicating central bankers around the world’s fight against inflation. As crude oil futures climb higher and higher, traders and analysts are increasingly talking about when — not if? – prices reach 100 dollars per barrel, reports Bloomberg. Bullish analysts say that even at current crude levels, many funds are underinvested in oil, creating the potential for higher barrel prices. Against this background, even some of the market’s most bearish analysts have begun to concede that $100 a barrel seems likely, especially given the long-term political risks in producing countries such as Libya and Nigeria.