On Friday, crude oil futures climbed, buoyed by anticipated interest rate cuts from the Federal Reserve.
Chairman Jerome Powell indicated the need for monetary policy adjustments in the U.S. Although the day’s gains were notable, they did not fully counteract the weekly losses.
In trading on the New York Mercantile Exchange, October’s West Texas Intermediate (WTI) crude ascended by 2.49%, increasing $1.82 to reach $74.83 a barrel.
Similarly, November’s Brent crude on the Intercontinental Exchange rose by 2.09%, adding $1.60 to finalize at $78.15 a barrel. Over the week, WTI fell by 2.37% and Brent by 1.92%.
Powell’s speech at Jackson Hole sparked a risk-on sentiment across global markets on Friday morning. Consequently, oil prices, already rising, surged further after the Fed confirmed anticipated rate reductions.
Starting in September, the scale of rate cuts will depend on upcoming employment data, as employment remains a significant concern for the Fed, an ING report highlights.
TD Securities’ Head of Commodity Strategy, Bart Melek, suggests that a Fed rate cut could stimulate weakened U.S. demand in subsequent months.
However, CIBC warns that without an escalation in Middle Eastern conflicts involving an OPEC member, oil’s demand prospects may remain dim, likely suppressing prices in the longer term.
Despite Friday’s rise, overall prices declined this week. Investors weighed the potential effects of a possible ceasefire in Israel amid active negotiation efforts.
Capital Economics notes that a current deal would unlikely shift oil prices significantly, as outcomes seem priced in. Yet, a collapse in talks could push futures higher, depending on tension levels.
Live Market IntelligenceCommodities — Live Market Board
Rio Times · Live Market Intelligence
Commodities — Live Market Board
+0.02%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| GOLD | 3,886 | +0.03% | -4.62% | 3,885 | 3,927 | 3,871 | 151,010 |
| SILVER | 49.12 | -1.70% | -2.97% | 49.97 | 50.73 | 48.41 | 49,657 |
| BRENT | 95.84 | +0.02% | +49.28% | 95.82 | 97.12 | 95.07 | 22,079 |
| WTI | 88.56 | -0.20% | +47.82% | 88.74 | 89.64 | 87.80 | 181,210 |
| COPPER | 6.09 | -1.50% | +21.80% | 6.18 | 6.24 | 6.05 | 53,682 |
| LITHIUM | 58.76 | -1.13% | -7.86% | 59.43 | 59.59 | 58.42 | 159,497 |
| IRON ORE | 161.91 | — | +55.06% | 161.91 | 161.91 | 1 | |
| SOY | 1,232 | +0.37% | +6.42% | 1,227 | 1,241 | 1,219 | 103,557 |
| CORN | 445.50 | +0.68% | +2.47% | 442.50 | 450.25 | 441.75 | 245,686 |
| WHEAT | 593.25 | +1.54% | +9.00% | 584.25 | 600.00 | 582.00 | 99,685 |
| COFFEE | 279.25 | -0.34% | -30.63% | 280.20 | 279.20 | 272.35 | 17,133 |
| SUGAR | 18.40 | +0.99% | +24.32% | 18.22 | 18.54 | 18.16 | 59,813 |
| COCOA | 5,123 | +1.13% | -2.68% | 5,066 | 5,330 | 5,169 | 27,100 |
| ORANGE JUICE | 136.85 | -2.91% | -12.02% | 140.95 | 141.25 | 135.00 | 973 |
| COTTON | 79.02 | +0.44% | +26.72% | 78.67 | 79.90 | 78.63 | 18,270 |
| BEEF | 224.80 | +2.70% | +1.59% | 218.90 | 225.88 | 221.45 | 23,034 |
| CATTLE | 335.35 | -0.10% | -1.32% | 335.67 | 336.98 | 329.53 | 9,700 |
| USD/BRL | 5.67 | +0.45% | +7.09% | 5.64 | 5.67 | 5.63 | — |
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