Home Investing News Oil set for weekly decline with Fed in no rush to cut rates

Oil set for weekly decline with Fed in no rush to cut rates


Oil set for weekly decline with Fed in no rush to cut interest rates By Reuters

Breaking News



Published Feb 22, 2024 09:22PM ET
Updated Feb 23, 2024 08:21AM ET

© Reuters. FILE PHOTO: A view shows oil tanks of Transneft oil pipeline operator at the crude oil terminal Kozmino on the shore of Nakhodka Bay near the port city of Nakhodka, Russia August 12, 2022. REUTERS/Tatiana Meel/File Photo

By Noah Browning

LONDON (Reuters) -Oil prices fell on Friday and were on track for a weekly decline after the U.S. central bank indicated that interest rate cuts could be delayed by at least two more months.

Brent crude futures were down $1.35, or 1.6%, at $82.32 a barrel by 1313 GMT and U.S. West Texas Intermediate crude futures lost $1.35, or 1.7%, to $77.26.

Both benchmarks were poised to register weekly declines after two weeks of gains, but indicationsof healthy fuel demand and supply concerns could revive prices in the coming days.

U.S. Federal Reserve policymakers should delay interest rate cuts by at least another couple of months, Fed Governor Christopher Waller said on Thursday, which could slow economic growth and curb oil demand.

Some analysts, however, say demand has remained largely healthy despite the impact of high interest rates, including in the United States.

JPMorgan’s demand indicators are showing oil demand rising by 1.7 million barrels per day (bpd) month over month through Feb. 21, its analysts said in a note on Friday.

“This compares to a 1.6 million bbd increase observed during the prior week, likely benefiting from increased travel demand in China and Europe,” the analysts said.

The Fed has held its policy rate steady in a 5.25% to 5.5% range since last July. Minutes of its meeting last month show most central bankers were worried about moving too quickly to ease policy.

Waller also pushed back on the idea that the Fed risks sending the economy into recession if it waits too long to cut rates, saying the Fed can afford to “wait a little longer”.

Oil futures had settled higher on Thursday as hostilities continued in the Red Sea, with Iran-aligned Houthis continuing attacks near Yemen.

Meanwhile, Israeli Prime Minister Benjamin Netanyahu’s war cabinet has approved sending negotiators to truce talks taking place in Paris on Friday as pressure mounts, according to a source briefed on the matter and Israeli media.

Oil set for weekly decline with Fed in no rush to cut interest rates

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News