Oil rates remain relatively stable as investors await Fed’s interest rate decision
Date
12/18/2024 1:51:01 AM
(MENAFN) Oil prices remained relatively stable early Wednesday morning, with investors taking a cautious approach ahead of the Federal Reserve's interest rate decision later in the day. Market participants are closely watching for any signals that could impact economic growth and oil demand.
Brent crude futures saw a modest increase, rising by 12 cents, or 0.16 percent, to USD73.31 per barrel by 0134 GMT. Similarly, U.S. West Texas Intermediate crude rose by 11 cents, or 0.16 percent, reaching USD70.19 per barrel. These slight gains come as traders await the Federal Reserve's decision on interest rates, which is expected to be the third rate cut since the beginning of its monetary easing cycle.
The Federal Reserve is anticipated to lower interest rates once again, which would have implications for the broader economy, including the oil market. Analysts believe that while the rate cut itself is important, the real focus for the oil market will be on any guidance provided about future rate movements in 2025. Lower interest rates tend to reduce borrowing costs, which can stimulate economic activity and drive up demand for oil.
In other developments, the European Union introduced its 15th round of sanctions against Russia in response to its ongoing war with Ukraine. This package included adding 33 more ships from Russia’s shadow fleet, which are used to transport crude oil and petroleum products. Additionally, the UK imposed sanctions on 20 ships for engaging in the illicit transportation of Russian oil. While these sanctions are likely to increase volatility in oil prices, they have yet to significantly disrupt Russia's ability to participate in the global oil market.
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