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Oil slightly up after Fed announcement

London: Oil prices edged higher on Thursday, led by the US Federal Reserve’s much-anticipated decision to cut interest rates, which could boost demand for crude.

At around 10:25 GMT (12:25 CET) the price of a barrel of Brent BRENT Brent or North Sea crude is a variation of crude oil that serves as a reference in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It has become the first international standard for fixing oil prices. from the North Sea, for delivery in November, was taking 0.99% has $74.36.

Its American equivalent, the barrel of West Texas Intermediate (WTI WTI West Texas Intermediate (WTI), also called Texas Light Sweet, is a variation of crude oil that serves as a standard in determining the price of crude oil and as a raw material for oil futures contracts on the New York Mercantile Exchange (Nymex), the energy exchange specializing in energy.), for delivery in October, won 0.83% has $71.50.

???? The US central bank (Fed) cut rates on Wednesday for the first time since 2020, hitting hard with a half-percentage point cut.

Jerome Powell, the head of the Fed, indicated that it was the “start (of a) process” of monetary policy change. Further cuts are expected, of an additional half-point in total by the end of 2024.

In the oil market, the prospect of monetary policy easing has boosted expectations of stronger future demand“, comments Ole Hvalbye, analyst at Seb.

A marked monetary easing lowers the cost of money and is likely to boost consumption, particularly of energy. Conversely, high interest rates tend to weigh on the economy and therefore demand.

Despite the latest price increases, the Brent price BRENT Brent or North Sea crude is a variation of crude oil that serves as a reference in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It has become the first international standard for fixing oil prices. is still on track to suffer its biggest quarterly loss of the yearMr. Hvalbye tempers.

???????? The economic slowdown in China, the world’s largest oil importer, is fueling market concerns.

A significant rise in prices”remains difficult“, points out Matt Britzman, analyst at Hargreaves Lansdown.

???????? Investors are also keeping an eye on tensions in the Middle East, particularly since the explosions of pagers and walkie-talkies in Lebanon on Tuesday and Wednesday targeting Hezbollah, causing more than 30 deaths and some 3,200 injuries.

The markets “assess the risk of supply disruptions in the region“, says John Plassard, analyst at Mirabaud.

???????? Israeli Defense Minister Yoav Gallant said on Wednesday that the “center of gravity“war moves”to the north“.

(c) AFP

Comment Oil slightly up after Fed announcement

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