SINGAPORE, May 2 (Reuters) – Oil prices rose on Thursday morning, recouping some of the losses from the previous three days. Prices had fallen by more than 3% on Wednesday after the U.S. Federal Reserve kept interest rates unchanged, which could dampen economic growth and demand for oil.
Brent crude futures for July delivery rose 50 cents, or 0.60%, to $83.94 a barrel by 07:20 GMT. U.S. West Texas Intermediate (WTI) crude futures for June rose 48 cents, or 0.61%, to $79.48 a barrel.
Fed Chair Jerome Powell said after Wednesday’s meeting that inflation in the U.S. remains high and the central bank will therefore wait before it starts cutting interest rates. This was a significant change in rhetoric from the Fed’s March meeting, when it signaled that it would cut rates three times by the end of the year, with easing possibly starting as early as June. However, due to the ongoing high inflation, financial markets are now only pricing in one rate cut this year, in November.
(1 EUR = 1.0718 USD)
Other factors influencing oil prices include:
- Concerns about supply disruptions in Libya. A million-barrel oil tanker, the Sirte Oil, has been at the center of a dispute between Libyan factions, raising fears of possible export disruptions.
Overall, oil prices remain volatile and are being influenced by a number of factors, including inflation, interest rates, and geopolitical stability.
Sources:
- Reuters: https://www.reuters.com/markets/quote/CLc1/
- Bloomberg: https://www.bloomberg.com/energy
