Oil prices fall as US rate cut fails to boost market sentiment

Oil prices Treasuries fell in Asian trading on Thursday after a stronger-than-expected Federal Reserve decision. interest rate cut raised concerns about the US Economy.

Brent crude oil futures for November fell 34 cents, or 0.46%, to $73.31 a barrel at 0015 GMT, while WTI crude oil futures By October, it fell to $70.49 per barrel, down 42 cents or 0.59%.

The U.S. central bank cut interest rates by half a percentage point on Wednesday, suggesting the Fed sees a slowdown in the labor market. That view appeared to counter the boost that interest rate cuts typically provide to economic activity.

“While the 50 basis point cut suggests tough economic headwinds ahead, bearish investors were left unsatisfied after the Fed raised the medium-term outlook for rates,” ANZ analysts said in a note.

Weak demand stemming from China’s economic slowdown also continued to weigh.


“In progress Demand concerns “The Fed’s decision was overshadowed by the fall in Chinese prices,” said IG market analyst Tony Sycamore. Refinery output in China slowed for a fifth month in August. data from the statistics office China’s industrial output growth also slowed last month to its lowest level in five months, with retail sales and new home prices weakening further.

However, Citi analysts said Chinese oil demand could rebound by 300,000 barrels per day year-on-year in the fourth quarter thanks to improved performance at independent refineries and the start-up of the new Shandong Yulong Petrochemical refinery, providing some support to global demand.

Markets were keeping an eye on developments in the Middle East after walkie-talkies used by the Lebanese armed group Hezbollah exploded on Wednesday, following similar pager explosions the day before.

Israeli officials did not comment on the attacks, but security sources said Israel’s Mossad spy agency was responsible, raising fears of an escalation in Israel’s 11-month war in Gaza.

Source link

Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.

Leave a Comment