Oil Prices Rebound After Three Weeks of Decline, Driven by Fed Rate Cut Expectations

(MENAFN) Oil prices experienced a rebound on Friday after three consecutive weeks of decline, bolstered by expectations that the US Federal Reserve (Fed) will implement further rate cuts. However, ongoing tariff uncertainties, a strong US dollar, and rising jobless claims limited the extent of the gains.

Brent crude, the international benchmark, rose by 0.6 percent, reaching USD 74.57 per barrel at 10:19 AM local time (0719 GMT), up from USD 74.14 at the previous session's close. Meanwhile, the US benchmark West Texas Intermediate (WTI) also increased by 0.6 percent, trading at USD 70.82 per barrel, compared to the prior session’s close of USD 70.42.

Fed officials have cited significant policy uncertainty during former President Donald Trump’s administration as a major challenge in shaping US monetary policy moving forward. Chicago Fed President Austan Goolsbee stated that a robust economy with declining inflation and full employment would support continued rate cuts, but he cautioned that uncertainties related to tariffs and other policy shifts necessitate a more cautious approach.

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