After gaining around six per cent last week due to the Middle East conflict, oil prices have largely remained range-bound this week as rate cut hopes from the US Federal Reserve have faded away. Geopolitical factors also influenced oil markets, including conflicts in the Red Sea and Russia-Ukraine along with high US crude inventories. How does US Fed rate action impact crude oil prices? This could dampen economic growth and oil demand, and it also boosted the dollar to three-month peaks, which reduces demand for oil among buyers paying in other currencies. Meanwhile, US crude oil inventories rose last week, while fuel stockpiles fell, according to American Petroleum Institute (API) figures.

Source: Mint February 15, 2024 04:37 UTC