AA/Ankara
Oil prices fell on Monday due to continued uncertainties regarding the US Federal Reserve’s (Fed) roadmap for 2025, as well as macroeconomic data pointing to a slowdown in economic growth in the United States.
International benchmark Brent crude fell 0.2% to $73.92 a barrel at 10:58 a.m. local time (0758 GMT), from $74.06 at the previous session’s close.
The US West Texas Intermediate (WTI) index also fell 0.2% to $70.49 per barrel from $70.64 at the close of the previous session.
Analysts noted that market participants are closely watching the Fed’s monetary decisions, as well as Chairman Jerome Powell’s statements after the Fed meeting, for guidance on future monetary policy actions. These uncertainties contribute to market volatility and are expected to influence oil prices.
The Fed is expected to cut interest rates by 25 basis points this week.
Furthermore, US macroeconomic data revealed signs of slowing economic growth in this country which is the largest oil consumer in the world, adding additional pressure on prices.
Thus, the number of first claims for unemployment benefits in the United States reached 242,000 for the week ending December 7, exceeding market expectations. This increase has raised concerns about demand, supporting the downward trend in oil prices.
However, these concerns about falling demand have been dampened somewhat by expectations for U.S. policy under President Donald Trump, including possible tax cuts, tariffs and immigration restrictions, which could support the economy. These factors helped to limit the fall in prices.
Additionally, expectations of an upcoming announcement of a stimulus package in China, the world’s largest oil importer, could boost economic growth and oil demand, supporting higher prices.
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