Oil prices fall slightly due to China and the Fed

Jakarta, - Crude oil prices on the spot market experienced a slight decline amid prospects for China's economic recovery to the prospect of lower US interest rates.

In trading today, Tuesday (25/6/2024) at 09:14 WIB, the price of Brent oil fell 0.09% to US$85.93 per barrel. Meanwhile, WTI oil prices weakened 0.06% to US$81.58 per barrel.

China, the world's largest oil importer, is reluctant to spend money amid concerns about their personal wealth triggered by a slump in the property sector, stunted wage growth, and high youth unemployment, putting China at risk of reaching its stated economic growth goal of "around 5%" this year.

Quoted from Reuters, the president of the US central bank (the Fed) in San Francisco Mary Daly said on Monday that she did not believe the US central bank should cut interest rates before policymakers were convinced that inflation was heading towards the 2% mark.

Delaying a rate cut would make borrowing costs higher over a longer period of time, which could reduce economic activity and hurt oil demand.

For information, in the June 2024 dot plot, it is observed that the expectation of a Fed rate cut will only occur once or by 25 basis points (bps). Whereas in the March 2024 dot plot, expectations for interest rate cuts were three times with a total of 75 bps.

Sources : cnbcindonesia.com Jun 25.24

in Oil
OPEC+ reduces production, world crude oil prices 'boil'