Oil prices remain stable

24 May 2024 , 08:59 AM

Early on Friday, as traders assessed the recent remarks made by the US Federal Reserve regarding interest rates in the face of persistent inflation, oil prices remained stable. This was helped by the strengthening in seasonal demand for fuel in the US.

Brent crude futures for June were up 1 cent to $81.37 a barrel. West Texas Intermediate (WTI) oil futures for June  were down 2 cents at $76.85.

On Thursday, both benchmarks reached multi-month lows: U.S. and Brent crude futures closed at a three-month low and at their lowest point since January.

As investors processed the minutes from the Federal Reserve’s most recent policy meeting on Wednesday, which revealed policymakers are still unsure about whether current interest rates are high enough to control persistent inflation, ongoing macroeconomic restrictions in the United States kept prices in check.

In the event that inflation spiked, several officials stated they might be open to raising borrowing prices once more. But since then, Fed Chair Jerome Powell and other decision-makers have expressed their belief that more rate increases are unlikely.

As the Memorial Day holiday weekend approached, which is traditionally seen as the beginning of the American summer driving season, rising petrol demand in the country helped keep prices stable.

All eyes will be on the June 1 meeting of OPEC+, the Organisation of the Petroleum Exporting Countries and its allies, where they will likely debate whether to continue the voluntary reduction in oil output by 2.2 million barrels per day.

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