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18/06/24
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Crude Prices Higher on Geopolitical Risk, Gains Limited by Comments from Fed Policymakers
On Tuesday crude price gains were limited after players evaluated comments from a Federal Reserve policymaker that urged investors to stay cautious about future rate cuts, while prices were supported by wars in the Middle East and Europe.
Brent crude futures were 53 cents higher at $84.78 per barrel and U.S. West Texas Intermediate crude futures were 72 cents higher at $81.05 per barrel.
Both benchmarks gained over $1 per barrel earlier in the day. Brent has climbed back from a close of $77.52 early in June, although it is still lower than its $90 peak hit in mid-April.
On Tuesday, prices were higher after John Williams, the New York Federal Reserve’s President said interest rates would come down steadily over time, although he did not say when the U.S. central bank may start easing its monetary policy.
When asked if the Fed may implement a rate cut in Sept., he said things were moving in the right direction. He added a cut will depend on future data.
An analyst at Price Futures Group, Phil Flynn, said oil prices were supported by cooling inflation.
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