• Deccan Chronicle
  • Andhra Bhoomi
  • Asian Age
  • ePaper
  •  Auto Refresh
Home

ePaper
Last Updated:04:53 AM IST | Wednesday, Feb 01, 2023
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Menu
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Home > Politics, Plan and Policy > Oil prices rise amid expectations that US Fed will cut rates
Politics, Plan and Policy
Oil prices rise amid expectations that US Fed will cut rates
By  
REUTERS   , Published : Jul 30, 2019, 11:06 am IST | Updated : Jul 30, 2019, 11:06 am IST

Tensions spiked between Iran and the West after Iranian commandos seized a British-flagged oil tanker in the Gulf.

Brent crude rose 33 cents, or 0.5 per cent, to USD 64.04 a barrel by 0435 GMT, after gaining 0.4 per cent the previous session. (Photo: Twitter)
Brent crude rose 33 cents, or 0.5 per cent, to USD 64.04 a barrel by 0435 GMT, after gaining 0.4 per cent the previous session. (Photo: Twitter)

Tokyo: Oil prices rose for a fourth day on Tuesday on optimism the US Federal Reserve will this week cut interest rates for the first time in more than ten years, which should support economic and fuel demand growth in the world’s biggest oil user.

Brent crude rose 33 cents, or 0.5 per cent, to USD 64.04 a barrel by 0435 GMT, after gaining 0.4 per cent the previous session.

US crude was up 30 cents or 0.5 per cent, at USD 57.17 a barrel, having risen 1.2 per cent on Monday.

So-called dovish monetary policy in the United States, where the central bank reduces interest rates, would “support a continuation in global expansionary activities and fuel demand growth” for the second half of 2019, Benjamin Lu, an analyst at Phillip Futures in Singapore, said in a note.

“If the Fed is a little more dovish and prices in a 75 basis points cut ... we might see oil pushing up towards USD 60,” Lu said by phone, referring to US crude.

Still, “demand side concerns are the shadow over oil prices,” he added.

US central bankers will begin their two-day meeting later on Tuesday and are expected to lower borrowing costs for the first time since the depths of the financial crisis more than a decade ago.

US President Donald Trump said a small rate cut “is not enough.”

Economic growth in the United States slowed less than expected in the second quarter, strengthening the outlook for oil consumption but, elsewhere, disappointing economic data has increased concerns about slower growth.

US and Chinese negotiators meet this week for their first in-person talks since agreeing to a truce to their trade dispute at the Group of 20 meeting last month, with some optimistic that the discussions will help bridge the gap between the world’s two largest economies and biggest oil consumers.

However, Trump said China might not want to sign a trade deal until after the 2020 US election.

Supply risks are still a concern as tensions remained high around the Strait of Hormuz, through which about a fifth of the world’s oil passes.

Tensions spiked between Iran and the West after Iranian commandos seized a British-flagged oil tanker in the Gulf this month in apparent retaliation for the capture of an Iranian tanker by British forces near Gibraltar.

end-of
Tags: 
oil prices, crude oil, opec, oil production
Location: 
Japan, Tokyo-to, Tokyo
Latest From Politics, Plan and Policy
As per the finance ministry, Finance Minister Nirmala Sitharaman will meet stakehokder groups of 'New Economy: Start-ups, Fintech and Digital Sector' on Monday morning, and financial sector and capital market representatives later in the day. (Photo: File | ANI)

FM Sitharaman to hold pre-Budget meetings with stakeholders beginning today

Brent crude futures were up 19 cents, or 0.3 per cent, at USD 62.47 a barrel.

Oil rises amid optimism over OPEC supply cuts, hopes on US-China trade

Traders are now eyeing next month’s meeting between the OPEC and Russia to determine if the group would deepen output cuts to prop up prices. (Photo: Twitter)

Oil slips as US-China trade deal hopes dwindle

Most Popular

Mukesh Ambani 9th richest on Forbes' real-time billionaires list
Top credit card myths harmful for your financial well-being
Microsoft CEO Satya Nadella tops Fortune's Businessperson of the Year 2019
Employment growth slowed down in last two years: report
GST structure: key challenges and its solutions

Editor's Picks

Income tax e-filers drop by over 6.6 lakh in FY19: Official data
Swiping on your smartphone reveals a lot about you to your social media company
  • Read Financial Chronicle as it appears in print.
  • Subscribe, and get it delivered in the inbox everyday.
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
  • Home
  • About Us
  • Contact Us
  • Terms of Service
  • Privacy Guidelines
  • Copyright © 2019 Financial Chronicle, All rights reserved
Developed & Maintained By Daksham