Oil Prices Settle Up Above $70 Ahead of Fed Rate Cut Decision

Daba Finance/Oil Prices Steady Above $70 Ahead of Fed Rate Cut Decision

AFRICAN STOCKS AND FINANCESeptember 18, 2024 at 2:01 AM UTC

TLDR

Oil prices stabilize amid anticipation of the U.S. Federal Reserve's interest rate cut, with Brent crude at $73.67 and U.S. crude at $71.08.
Price rise attributed to supply disruptions from Hurricane Francine and expected demand surge post-Fed rate cut.
Key factors impacting oil market: hurricane disruptions, Fed rate cuts, supply-demand dynamics.

Oil prices steadied on Wednesday following gains earlier in the week, as investors await the U.S. Federal Reserve's anticipated interest rate cut.

Brent crude futures for November edged down 3 cents to $73.67 a barrel, while U.S. crude futures for October slipped 11 cents, or 0.2%, to $71.08 a barrel.

Prices had risen about $1 per barrel on Tuesday due to lingering supply disruptions from Hurricane Francine in the U.S., the world’s largest oil producer, and expectations of increased demand following the Fed's first rate cut in four years.

Key Takeaways

Potential Middle East conflicts also supported prices amid concerns of output disruptions after reported attacks by Israel on Hezbollah in Lebanon. Analysts suggest that oil prices could maintain a bullish tone, with investors focusing on the Fed's rate decision, which could stimulate U.S. fuel demand and weaken the dollar. Mixed U.S. oil inventory data from the American Petroleum Institute showed a rise in crude stockpiles and refined products, with the official Energy Information Administration report due later Wednesday.

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