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06/06/24
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Crude Prices Higher on Statements By OPEC+ Ministers
On Thursday, crude prices lifted by over $1 per barrel as the European Central Bank cut interest rates for the first time in about 5 years, and ministers from OPEC+ told investors it could modify its latest agreement on oil output.
Brent crude futures were $1.64 or 2.09% higher at $80.05 per barrel and U.S. West Texas Intermediate crude futures were $1.68 or 2.27% higher at $75.75 per barrel.
The European Central Bank on Thursday implemented its first interest rate cut since 2019 and cited progress in curbing inflation but cautioned that the fight was not over yet.
The central bank of Denmark has also cut its benchmark interest rate by 0.25% to 3.35%.
An easing of post-pandemic supply problems and lower fuel costs have helped push inflation down to 2.6% from 10% in 2022 in the eurozone.
Investors are now not as sure as they were a few weeks ago that inflation has dropped enough for the ECB to implement a major cutting cycle. According to a Reuters poll, economists in the U.S. predict the Fed will cut rates in September.
A partner at Again Capital, John Kilduff, said the ECB rate cuts were helping and he expected the Fed would finally follow suit in the U.S.
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