Dec 19, 2024 (MENAFN via COMTEX) --
(MENAFN - The Rio Times) The oil market witnessed a subtle shift as prices edged up slightly, breaking a streak of losses. This movement came in response to the Federal Reserve's interest rate decision and a smaller-than-expected decrease in U.S. oil inventories.
Brent crude, the global oil benchmark, saw a modest increase of 0.27% for February 2025 contracts. It settled at $73.39 per barrel on the Intercontinental Exchange in London. This price point marks the lowest level since December 10th.
In the United States, West Texas Intermediate (WTI) crude for January delivery rose by 0.53%. It closed at $70.02 per barrel on the New York Mercantile Exchange. These price movements reflect the market's cautious optimism.
The U.S. Energy Information Administration reported a decline in oil stocks. Inventories fell by 934,000 barrels to 421.016 million barrels for the week ending December 13th. This drop was less than the 1.5 million barrel decrease analysts had predicted.
The Federal Reserve's decision to cut interest rates by 25 basis points influenced oil prices. The new target range now stands at 4.25% to 4.50%. This move signals a shift in monetary policy that could impact oil demand.
The Fed's future outlook also played a role in market sentiment. Projections suggest only two more 25 basis point cuts throughout 2025. This conservative approach stems from stable unemployment rates and a slower-than-expected inflation cooldown.
Oil Prices Rebound Amidst Fed Decision and Market Dynamics
Geopolitical factors added another layer to the oil market's complexity. Reports indicate progress in negotiations to end the 14-month conflict in Gaza. A potential ceasefire agreement could reshape regional dynamics and impact oil supply chains.
These developments underscore the delicate balance in global oil markets. Prices respond to a mix of economic indicators, policy decisions, and geopolitical events. Market participants must navigate these factors to understand future price trends.
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COMTEX_461036367/2604/2024-12-19T16:49:34
