Oil remains stable on Wednesday in the hopes that the US Federal Reserve (the Fed) will put an end to the current interest rate hikes. By curbing interest rate policy, dollar-priced oil will become cheaper for holders of foreign currencies.

Stable levels follow significant price climbs on Tuesday amid optimism that the Fed was getting closer to ending its cycle of interest rate hikes.

On Wednesday morning, a barrel of European reference oil Brent goes for USD 85.62, against USD 85.60 the night before and USD 84.94 on Tuesday afternoon. US West Texas Intermediate trades at USD 81.49, against USD 81.52 on Wednesday night, after having climbed up from USD 80.84 on Tuesday afternoon.

Oil price stunts as inflation data later in the day will likely influence the Fed’s policy on future interest rate hikes.

Philadelphia Federal Reserve Bank President Patrick Harker said on Tuesday that he expects the Fed will soon put an end to the interest rate hikes, Reuters writes. In turn, Minneapolis Federal Reserve Bank President Neel Kashkari said he thinks inflation will hit the ”the mid-threes” by the end of the year, significantly exceeding the Fed’s aim to keep it at 2%.

Last week, US crude inventories rose against forecasts according to data from American Petroleum Institute API. Washington will present stockpile data later on Wednesday.

The market is waiting for monthly reports from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA), due on Thursday and Friday respectively, to give clarity on oil demand and supply.

Elsewhere in commodities, a troy ounce of gold goes for USD 2018.17 on Wednesday morning, against USD 2002.49 on Tuesday afternoon.