Commodities and Futures News

Oil prices inch up on Fed rate cut outlook

2024.09.15 21:14

SINGAPORE (Reuters) – Oil prices edged up in early trade on Monday amid expectations of a U.S. interest rate cut this week, though gains were capped by U.S. supply resumptions following Hurricane Francine and weaker China data.

futures for November were up 15 cents, or 0.2% at $71.76 a barrel at 0015 GMT. futures for October were up 23 cents, or 0.3%, at $68.88 a barrel.

Both contracts had settled lower in the previous session, with concerns about supply disruptions easing as Gulf of Mexico crude production resumed following Hurricane Francine and as rising data showed a weekly rise in U.S. rig count.

Still, nearly a fifth of crude oil production and 28% of output in the Gulf of Mexico remain offline in the hurricane’s aftermath.

A key factor that will dominate the market this week is how aggressive a rate cut the U.S. Federal Reserve will deliver following its Sept. 17-18 meeting. Fed fund futures show investors are increasingly betting the central bank will cut by 50 basis points instead of 25 bps, according to CME FedWatch.

Lower interest rates will reduce the cost of borrowing, which can boost economic activity and lift demand for oil.

“We remain in the gradualist camp and expect the Fed to begin cutting by 25 basis points,” ANZ analysts in a note.

In China, the world’s top oil importer, industrial output growth slowed to a five-month low in August, while retail sales and new home prices weakened further. Oil refinery output also fell for a fifth month, as disappointing fuel demand and weak export margins curbed production.

© Reuters. FILE PHOTO: An aerial view shows tugboats helping a crude oil tanker to berth at an oil terminal, off Waidiao Island in Zhoushan, Zhejiang province, China July 18, 2022. cnsphoto via REUTERS/File Photo

Meanwhile, the dollar remained steady after Republican presidential candidate Donald Trump was safe following what the FBI said appeared to be a second assassination attempt outside his golf course in Florida.

In the Middle East, Prime Minister Benjamin Netanyahu said Israel would inflict a “heavy price” on the Iran-aligned Houthis, after they reached central Israel with a missile on Sunday for the first time.



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 103,228.66 0.78%
ethereum
Ethereum (ETH) $ 2,339.32 5.98%
tether
Tether (USDT) $ 1.00 0.03%
xrp
XRP (XRP) $ 2.37 2.84%
bnb
BNB (BNB) $ 661.42 5.78%
solana
Solana (SOL) $ 171.68 6.33%
usd-coin
USDC (USDC) $ 1.00 0.00%
dogecoin
Dogecoin (DOGE) $ 0.209463 8.12%
cardano
Cardano (ADA) $ 0.78096 3.22%
tron
TRON (TRX) $ 0.263531 3.51%
staked-ether
Lido Staked Ether (STETH) $ 2,337.22 5.99%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 103,185.65 0.75%
sui
Sui (SUI) $ 3.96 3.28%
chainlink
Chainlink (LINK) $ 16.05 2.37%
avalanche-2
Avalanche (AVAX) $ 23.49 6.32%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,806.63 5.95%
stellar
Stellar (XLM) $ 0.300242 2.96%
shiba-inu
Shiba Inu (SHIB) $ 0.000015 7.47%
hedera-hashgraph
Hedera (HBAR) $ 0.204092 5.52%
the-open-network
Toncoin (TON) $ 3.32 3.99%
bitcoin-cash
Bitcoin Cash (BCH) $ 415.55 0.07%
hyperliquid
Hyperliquid (HYPE) $ 24.58 4.32%
leo-token
LEO Token (LEO) $ 8.73 1.40%
usds
USDS (USDS) $ 1.00 0.00%
litecoin
Litecoin (LTC) $ 103.43 9.21%
polkadot
Polkadot (DOT) $ 4.98 11.24%
weth
WETH (WETH) $ 2,341.80 6.09%
monero
Monero (XMR) $ 316.00 5.91%
bitget-token
Bitget Token (BGB) $ 4.83 7.63%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,498.01 6.07%
pepe
Pepe (PEPE) $ 0.000013 17.48%
pi-network
Pi Network (PI) $ 0.738893 10.04%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00 0.18%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 103,206.65 0.67%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.04%
whitebit
WhiteBIT Coin (WBT) $ 30.34 0.27%
uniswap
Uniswap (UNI) $ 6.43 3.92%
bittensor
Bittensor (TAO) $ 435.44 3.52%
near
NEAR Protocol (NEAR) $ 2.94 6.85%
aptos
Aptos (APT) $ 5.64 1.60%
dai
Dai (DAI) $ 1.00 0.01%
okb
OKB (OKB) $ 54.68 3.88%
ondo-finance
Ondo (ONDO) $ 1.01 3.91%
aave
Aave (AAVE) $ 211.54 3.14%
susds
sUSDS (SUSDS) $ 1.05 0.04%
internet-computer
Internet Computer (ICP) $ 5.51 5.82%
ethereum-classic
Ethereum Classic (ETC) $ 19.28 4.40%
blackrock-usd-institutional-digital-liquidity-fund
BlackRock USD Institutional Digital Liquidity Fund (BUIDL) $ 1.00 0.00%
crypto-com-chain
Cronos (CRO) $ 0.101742 3.04%
official-trump
Official Trump (TRUMP) $ 14.23 4.43%