Oil prices rise on expectations of US Federal Reserve policy easing

12/23/2024 7:32:20 AM

(MENAFN) Oil prices edged higher on Monday, buoyed by anticipation of further easing in US Federal Reserve (Fed) policy following softer-than-expected inflation data.

Brent crude, the international oil benchmark, rose 0.20 percent to USD72.79 per barrel at 11:40 AM local time (0840 GMT), up from the previous session's close of USD72.64.

Similarly, the US benchmark, West Texas Intermediate (WTI), increased 0.17 percent, reaching USD69.59 per barrel compared to USD69.47 in the prior session.

The price increases followed US inflation data that fell short of expectations, reinforcing the belief that the Fed may continue to ease policy rates.

Macroeconomic indicators showed US consumer spending grew by 0.4 percent in November, below projections. Personal incomes also rose modestly by 0.3 percent compared to the previous month.

The core personal consumption expenditures (PCE) price index, which excludes food and energy and serves as the Fed's preferred inflation measure, increased by 0.1 percent month-on-month and 2.8 percent year-on-year in November, missing market expectations.

While the Fed is expected to maintain higher policy rates for an extended period to control inflation, the softer inflation data has eased market concerns following the Fed's recent rate cut.

MENAFN23122024000045016755ID1109023642

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.