The FED announced yesterday that it will keep interest rates within their current range, between 5.25 and 5.5%, although it left open the possibility of an increase before the end of the year due to persistent inflation.
The price of barrel of petroleum Texas Intermediate (WTI) registered a rise of 0.1% this Thursday, reaching $90.16 per barrel, after facing its biggest drop in a month the previous day due to concerns about the possibility that the United States Federal Reserve (FED) has not yet finalized its increases in the interest rates.
WTI futures contracts for delivery in November register an increase of US$0.50 compared to the close of the previous day. For its part, Brent crude oil registered an increase of 0.3% to US$93.83.
The FED announced yesterday that it will maintain the interest rates within its current range, between 5.25 and 5.5%, although it left open the possibility of an increase before the end of the year due to persistent inflation.
With today’s increases, the price of Texas oil returned to the trend of recent weeks, driven by expected cuts in Saudi Arabia production and Russia, as well as the decreases in crude oil inventories of the United States, approaching again the psychological mark of the US$90 per barrel.
Since August, the price of black gold had experienced an increase of almost 20%.
However, upward pressures moderated slightly this Thursday due to the maintenance of US domestic production, which reached a new post-pandemic level of 12.9 million barrels per day in Julyas reported by Tom Essaye in his report for The Sevens Report.
The increase in oil prices It also increases the chances of a further increase in ratessince it influences the readings of the consumer price index (CPI), which is why different analysts maintain that it will be problematic for the Fed to prevent a spiralization of price dynamics.
It is worth remembering that the data used by the Federal Reserve is unreliable and distorted by events such as the restart of federal student loans, the autoworker strikes and inflation. Given these factors, it makes sense for the Federal Reserve to take a more cautious approach.
Source: Ambito
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