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09/08/24
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Crude Prices Set For 3% Weekly Gains on Rate Cut Hopes, Positive Economic Data
On Friday, crude prices moved up and were on track for a weekly gain of over 3% as demand concerns were eased by signals from Fed policymakers that they may cut interest rates in September and positive economic data, while supply risks were raised by fears of a widening Middle Eastern conflict.
Brent crude futures were 37 cents, or 0.5% higher to $79.53 per barrel. U.S. West Texas Intermediate crude futures were 46 cents, or 0.6% higher at $76.65 per barrel.
Brent was on track to rise over 3.5% on a weekly basis, while WTI was set to gain over 4%.
BOK Financial’s senior vice president of trading, Dennis Kissler, said crude was in recovery mode during the last 3 trading sessions as geopolitical tensions still seemed to be a positive factor, and off-again on-again recession fears have eased slightly.
On Thursday, three Federal Reserve policymakers indicated that they had increased confidence that inflation was easing enough to cut rates. A larger-than-expected decline in U.S. jobless claims data also assisted in underpinning the recovery.
The number of Americans filing initial applications for unemployment benefits last week dropped more than expected, indicating that fears the labor market was unraveling were exaggerated and that the gradual easing in the labor market was intact.
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