Oil Prices Set for Weekly Decline Amid Fed's Rate Cut Delays
The Federal Reserve's decision to delay interest rate cuts has led to a downturn in oil prices, with geopolitical tensions and supply concerns providing a backdrop.
- Oil prices are on track for a weekly decline following the Federal Reserve's indication that interest rate cuts could be delayed by at least two more months.
- Brent crude and West Texas Intermediate futures have both seen decreases, with analysts pointing to healthy fuel demand and supply concerns that could revive prices.
- Fed Governor Christopher Waller emphasized the need to delay rate cuts to assess inflation signals, suggesting the Fed can afford to 'wait a little longer'.
- Geopolitical tensions in the Middle East, including hostilities in the Red Sea and Gaza truce talks, add complexity to the oil market dynamics.
- U.S. crude oil inventories rose less than expected last week, and refinery run rates may increase, indicating potential shifts in oil demand and supply.
CNA 