Oil Prices Fluctuate Amid Middle East Tensions and Rate Cut Speculations

Oil prices see mixed movements as investors navigate through geopolitical unrest and shifting expectations for U.S. interest rate cuts.

Oil prices experienced slight fluctuations on Wednesday, with Brent crude and West Texas Intermediate showing minor changes amid ongoing Middle East tensions and speculation about U.S. interest rate cuts.
Investors are closely monitoring the situation in the Middle East, where recent attacks on shipping in the Red Sea by Houthi militants have raised concerns over oil supply disruptions.
Expectations for when the Federal Reserve might cut interest rates have shifted, with most now anticipating a cut in June, influenced by persistent U.S. inflation.
The oil market is also reacting to potential supply adjustments, as Russia commits to OPEC+ output cuts despite refinery damages from Ukrainian drone attacks.
U.S. crude inventories are estimated to have risen, adding another layer of complexity to the market's dynamics.