Singapore, August 15 (FFN) – Oil prices strengthened on Thursday morning, driven by growing optimism that a potential interest rate cut in the United States could boost the growth of the world’s largest economy. Additionally, persistent market concerns about a possible reaction from Iran following the killing of a leader of the Palestinian Hamas movement last month contributed to the price increase.
According to Bloomberg data, the price of American light crude oil, West Texas Intermediate (WTI), for September delivery increased by 7:19 CET to $77.12 per barrel, reflecting a rise of 14 cents or 0.18% compared to the previous day.
Current Oil Prices:
| Oil Type | Delivery | Price (USD) | Change (%) |
|---|---|---|---|
| West Texas Intermediate (WTI) | September | $77.12 | +0.18% |
| Brent | October | $79.86 | -0.13% |
Key Factors Influencing Prices:
- Expectations of an Interest Rate Cut in the US: Consumer prices in the US slightly increased in July, with year-over-year inflation slowing below 3% for the first time in almost three and a half years. This development has strengthened expectations that the Federal Reserve System (Fed) may cut interest rates next month.
- Concerns About Iran’s Reaction: Tensions in the Middle East, particularly concerns about a possible response from Iran following the killing of a Hamas leader, are also contributing to the rise in oil prices.
On Wednesday, however, both major oil contracts lost more than 1% after reports of an unexpected increase in US oil inventories, which are the largest in the world.
Euro to Dollar Exchange Rate:
(1 EUR = 1.1019 USD)
