The market has taken into account the possibility that the Fed will decide on a rate cut next month.
The prices of the oil rose more than 1% on Thursday as expectations of a rate cut interest rates in USA Within a few weeks they had sparked a rally after four days of falling prices.
The futures of the Brent, reference in the Uruguayan market, closed with an increase of 1.17 dollars, or 1.54%, to 77.22 dollars per barrel, while those of American crude West Texas Intermediate (WTI) gained $1.08, or 1.5 percent, to $73.01.
On Wednesday, the minutes of the July meeting of the Federal Reserve (Fed) showed that most officials thought the central bank was on track for an interest rate cut next month.
Higher interest rates increase the cost of borrowing, which can slow the economic activity and reduce demand for oil.
The spotlight is on the Fed
“He dollar “has sold off in the wake of the news of the interest rate cut,” he said. John Kilduff, partner at Again Capital. “Everyone is talking now about the Fed cutting rates by 50 basis points, which would be significant,” he said.
Fed Chairman, Jerome Powell, will speak Friday at the annual central bank conference in Jackson Hole, Wyoming. Traders will be looking for information on whether he expects to cut rates by 25 or 50 basis points.
Also supporting oil prices, a U.S. government report on Wednesday showed that inventories Crude, gasoline and distillate prices fell more than expected last week, a sign that demand is picking up.
In Middle East, Iran-aligned Houthi militants continued to attack international shipping in solidarity with the Palestinians in the war between Israel and Hamas.
Source: Ambito
