Black Gold Glistens After Fed & Mideast Jitters

5 Jan 2024 , 09:08 AM

Friday saw a little increase in oil prices as U.S. Secretary of State Antony Blinken got ready to travel to the Middle East in an attempt to stop the Israel-Gaza conflict from getting worse and as minutes from a Federal Reserve meeting indicated that inflation was under control.

U.S. West Texas Intermediate crude futures increased by 50 cents, or 0.7%, to $72.69, while Brent crude futures increased by 37 cents, or 0.5%, to $77.96 a barrel.

The benchmarks, which are expected to close the first week of the year higher, have almost recovered all of their losses from Thursday, when large weekly gains in petrol and distillate stocks caused prices to settle lower after a bumpy day.

The talks in the Fed meeting minutes indicated a growing feeling that inflation is under control and growing concern about the potential hazards that a ‘overly restrictive’ monetary policy may pose for the economy, even though the minutes did not directly hint at when interest rate decreases would begin.

Lower interest rates cut the cost of borrowing for consumers, which can increase demand for oil and spur economic growth.

Concerns over supplies were further heightened by events in the Middle East, where Israeli forces are preparing a more focused offensive in the north and an intensified hunt for Hamas leaders in the south, according to the country’s defence minister on Thursday.

U.S. Secretary of State Blinken was scheduled to depart on Thursday for a week-long diplomatic visit to the Middle East with the goal of assisting in preventing the crisis from getting worse, according to the State Department.

For feedback and suggestions, write to us at [e-mail]