Oil prices decline amid US Fed uncertainty, economic slowdown
Date
12/17/2024 1:22:25 AM
(MENAFN) Oil prices drop on Monday as uncertainties surrounding the US Federal Reserve’s (Fed) 2025 policy outlook and macroeconomic indicators signaling a slowdown in US economic growth weigh on the markets.
The international benchmark brent crude slips by 0.2 percent to USD73.92 per barrel at 10:58 AM local time (0758 GMT), down from the prior session’s closing price of USD74.06.
Similarly, the US benchmark, West Texas Intermediate (WTI), decreases by 0.2 percent to USD70.49 per barrel, compared to USD70.64 at the close of the previous session.
Analysts highlight that investors are closely monitoring the Fed’s upcoming decisions and comments from Chairman Jerome Powell after the central bank’s meeting for signals regarding future monetary policy. These uncertainties are fueling volatility in the oil market and adding downward pressure on prices.
Markets anticipate that the Fed will lower interest rates by 25 basis points this week.
Additionally, recent US macroeconomic data reflects slowing economic activity in the world’s largest oil-consuming nation, intensifying concerns about demand.
The number of initial unemployment benefit claims in the US rises to 242,000 for the week ending December 7, surpassing market forecasts. This uptick in jobless claims further dampens sentiment and contributes to the decline in oil prices.
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