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Oil declines as markets await Powell's economic outlook address
(MENAFN) Oil prices edged lower ahead of today’s speech by US Federal Reserve Chairman Jerome Powell on the economic outlook, as markets remained cautious.
Brent crude, the global oil benchmark, slipped 0.1 percent to USD71.67 per barrel at 09:42 a.m. local time (0642 GMT), down from the previous session’s close of USD71.75. Similarly, the U.S. benchmark, West Texas Intermediate, decreased by 0.1 percent to USD67.84 per barrel from USD67.90 in the prior session.
US inflation data released on Wednesday raised concerns that the Fed's efforts to curb inflation might extend longer than anticipated, applying downward pressure on oil prices.
Key inflation figures have led to speculation over whether the Fed will proceed with a rate cut in December, as rising inflation could cause the central bank to reconsider. Elevated interest rates are likely to strengthen the US dollar, which could dampen oil demand.
Investors are watching Powell’s remarks for hints about the Fed's next moves, with money market futures indicating an 83 percent chance of a 25 basis point rate cut next month. Additionally, data from the American Petroleum Institute (API) revealed a larger-than-expected drop in US crude stocks, helping limit further declines in oil prices.
Brent crude, the global oil benchmark, slipped 0.1 percent to USD71.67 per barrel at 09:42 a.m. local time (0642 GMT), down from the previous session’s close of USD71.75. Similarly, the U.S. benchmark, West Texas Intermediate, decreased by 0.1 percent to USD67.84 per barrel from USD67.90 in the prior session.
US inflation data released on Wednesday raised concerns that the Fed's efforts to curb inflation might extend longer than anticipated, applying downward pressure on oil prices.
Key inflation figures have led to speculation over whether the Fed will proceed with a rate cut in December, as rising inflation could cause the central bank to reconsider. Elevated interest rates are likely to strengthen the US dollar, which could dampen oil demand.
Investors are watching Powell’s remarks for hints about the Fed's next moves, with money market futures indicating an 83 percent chance of a 25 basis point rate cut next month. Additionally, data from the American Petroleum Institute (API) revealed a larger-than-expected drop in US crude stocks, helping limit further declines in oil prices.
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