2024-02-23T04:36:45+00:00
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/ Oil prices fell in early Friday trading after a Federal Reserve official said interest rate cuts should be postponed for at least two more months, while US crude stock data also weighed on prices.
The US Energy Information Administration said on Thursday that US crude oil inventories rose in the week ending February 16 by 3.5 million barrels to 442.9 million, compared with analysts’ expectations in a Reuters poll for a rise of 3.9 million barrels.
Brent crude futures were down 44 cents, or 0.5 percent, at $83.23 a barrel by 0413 GMT. U.S. West Texas Intermediate (WTI) crude futures were down 45 cents, or 0.6 percent, at $78.16.
Brent crude is heading for a slight weekly loss of about 0.3 percent, while US crude is heading for a weekly gain of about 0.8 percent. Both crudes are still up more than 8 percent since the start of the year.
Fed policymakers should delay interest rate cuts for at least another two months to see if the recent surge in inflation means progress toward price stability is faltering or just a blip in the road, Fed Governor Christopher Waller said Thursday.
It is worth noting that keeping interest rates at a higher level for a longer period leads to slower economic growth, which limits demand for oil.
The US Federal Reserve has kept interest rates at a range of 5.25-5.5 percent since last July, and the minutes of its policy meeting last month showed that most of its officials were wary of rushing to ease monetary policy.
Oil indexes pared some of their gains on Thursday after Waller’s comments.
Oil futures rose on Thursday amid continued hostilities in the Red Sea, with Yemen’s Houthi rebels stepping up attacks in the Red Sea in what they see as support for the Palestinians in the Gaza war.
Israeli Prime Minister Benjamin Netanyahu’s government has agreed to send negotiators to Paris to take part in talks aimed at reaching a truce in Gaza, according to an informed source and Israeli media.