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Crude Oil Prices Declines on Bank Rate Worries
WORLD, Sept. 26 – The global crude oil prices drop slightly at the international market. The price of black gold has been encircled in uncertainty despite the extended cut by Saudi Arabia and Russia announced last week
BRENT CRUDE
Brent crude futures fell below $93 per barrel on Tuesday as concerns that major central banks would keep interest rates higher-for-longer gripped commodity markets, the prime crude traded above $95 a barrel last week after comment by Saudi energy minister.
The US Federal Reserve held its benchmark rate steady at its September policy meeting, but signaled another rate hike this year and fewer rate cuts in 2024.
The European Central Bank and the Bank of England also indicated that they would hold rates steady at restrictive levels for some time.
Still, Brent has rallied more than 20% since the end of June as OPEC+ majors Saudi Arabia and Russia extended supply cuts through the end of the year, stoking fears of larger market deficits in the fourth quarter.
Additionally, Russia recently issued a temporary ban on fuel exports to most countries in order to stabilize its domestic market, while US oil production continued to decline.
WTI CRUDE
The West Texas Intermediate (WTI) crude futures weakened toward $89 per barrel on Tuesday as concerns that major central banks would keep interest rates higher-for-longer gripped commodity markets.
The US Federal Reserve held its benchmark rate steady at its September policy meeting, but signaled another rate hike this year and fewer rate cuts in 2024.
The European Central Bank and the Bank of England also indicated that they would hold rates steady at restrictive levels for some time.
Still, oil has rallied nearly 30% since the end of June as OPEC+ majors Saudi Arabia and Russia extended supply cuts through the end of the year, stoking fears of larger market deficits in the fourth quarter.
Additionally, Russia recently issued a temporary ban on fuel exports to most countries in order to stabilize its domestic market, while US oil production continued to decline.