Market participants expect the Federal Open Market Committee of the US Central Bank to temporarily stop raising interest rates amid uncertainty about the economic prospects and the continuing effects of raising interest rates ten times since March 2022.
A rate hike supports the dollar, making commodities denominated in it more expensive for holders of other currencies, and affects oil prices. Halting the increases would stimulate economic growth and demand for oil, which would support prices.
The International Energy Agency increased its forecast for oil demand growth this year by 200 thousand barrels per day to 2.4 million barrels per day, which contributes to raising the expected total quantity to 102.3 million barrels per day.
The IEA’s forecast numbers for oil demand growth slightly exceed those in OPEC’s forecasts.
price move
By 1052 GMT, Brent crude futures rose $1.11, or 1.5 percent, to $75.38 a barrel. US West Texas Intermediate crude rose 99 cents, or 1.4 percent, to $70.40 a barrel.
Both raw materials rose more than 3 percent, in the settlement of Tuesday’s session, boosted by hopes for higher demand for fuel after the Chinese central bank cut short-term lending interest.
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