Oil Prices Fall as US Federal Reserve Signals Longer High Interest Rates

said Lori Logan, Bank President Federal Reserve In Dallas, Friday, it is still not clear whether monetary policy has been tightened enough to reduce inflation to the two percent target of the US Central Bank.

High interest rates usually slow economic activity and weaken demand for oil.

Price movements

Over the week, Brent crude recorded a loss of 0.2 percent, while US West Texas Intermediate crude recorded an increase of 0.2 percent.

In Friday trading, crude futures fell Brent $1.09, or 1.3 percent, to reach $82.79 per barrel when settled, while US West Texas Intermediate crude fell one dollar, or 1.3 percent, to reach $78.26 per barrel when settled.

Federal Reserve Bank of Atlanta President Raphael Bostic told Reuters that inflation is likely to slow under current monetary policy, which could prompt the central bank to start cutting interest rates in 2024, though it may not the cut is only a quarter of a percentage point and it does not happen before. the last months of the year.

The dollar rose after the officials’ statements Federal Reserve Board This makes goods denominated in US currency more expensive for consumers than those in other currencies, and US interest rates remaining high for longer could also weaken demand .

Next week, US inflation data could influence the Federal Reserve’s interest rate decisions.

Data yesterday, Thursday, showed an increase in imports China oil in April compared to the same month last year. It helped prevent oil prices from falling.

Chinese exports and imports returned to growth in April after contracting in the previous month, reflecting improved demand.

The European Central Bank is also expected to start cutting interest rates in June.

The Russian Intelligence Agency said on Friday that an attack by a Ukrainian drone caused a fire in a refinery. Oil In the Kaluga region of Russia, in the latest attack from Kiev in a series of revenge attacks on energy infrastructure.

The conflict continues in the Middle East as well, after Israeli forces bombed areas in the city of Rafah in the southern part of the Gaza Strip. GazaThursday, and the lack of progress in the latest round of ceasefire negotiations.