Federal Character
  • Home
  • News
  • Politics
  • Business & Finance
  • Entertainment
  • Sports
  • Tech
  • Relationship and Life
  • Fashion & Lifestyle
  • Food & Nutrition
  • Health
  • Opinion
No Result
View All Result
  • Home
  • News
  • Politics
  • Business & Finance
  • Entertainment
  • Sports
  • Tech
  • Relationship and Life
  • Fashion & Lifestyle
  • Food & Nutrition
  • Health
  • Opinion
No Result
View All Result
Federal Character
No Result
View All Result
Home Business & Finance

Oil Prices Slide on Fed Rate Hike Concerns

Eriki Joan UgunushebyEriki Joan Ugunushe
May 22, 2024
in Business & Finance
0
Oil Prices Slide on Fed Rate Hike Concerns
Share on FacebookShare on TwitterShare on Whatsapp

Oil prices have been on a downward trend for the past three days, with worries about the Federal Reserve raising interest rates in the United States being the main culprit. This potential move by the Fed could dampen economic activity and reduce demand for oil, especially in the world’s biggest oil consumer, the US.

Table of Contents

Toggle
  • Why It Matters
  • What They Are Saying
  • Bottom Line

Why It Matters

On Wednesday, Brent crude oil, a global benchmark, was trading around $82.17 per barrel, down nearly 1% from the previous day. Similarly, West Texas Intermediate (WTI), the US oil benchmark, was also down around 0.9% at $77.93 per barrel.

 

This decline comes after comments from Fed policymakers on Tuesday indicating they might hold off on lowering interest rates for a while. The Fed wants to ensure inflation, which has been a major concern lately, is truly under control before easing borrowing costs. Higher interest rates tend to slow down economic growth, which can lead to less demand for oil.

Adding to the pressure on oil prices is the recent rise in US crude oil and gasoline stockpiles. This indicates a potential supply glut, which could further drive prices down. However, there’s a bright spot for consumers – retail gasoline prices have actually fallen for four weeks in a row, leading to some relief at the pump just ahead of the US summer driving season that kicks off with the Memorial Day holiday weekend.

What They Are Saying

Investors are now looking towards two key events for further clues on the direction of oil prices. The first is the release of the minutes from the Fed’s latest policy meeting, which will be scrutinized for insights into the Fed’s views on inflation and their plans for future interest rate adjustments. The second is the release of US oil inventory data by the Energy Information Administration (EIA).

“The Federal Open Market Committee (FOMC) minutes will be scrutinised for Fed’s assessment of bumpy Q1 inflation and clues on the timing and extent of potential interest rate cuts in 2024,” ANZ analysts said in a report.

“It’s more of a wait and see ‘what the data is telling us’ approach,” ANZ said.

Meanwhile, the situation in Europe presents a contrasting picture. The European Central Bank (ECB) is signaling a potential interest rate cut in early June, reflecting a more optimistic economic outlook in the eurozone.

Bottom Line

In essence, oil prices are caught in a tug-of-war. Concerns about the Fed raising rates in the US and a potential economic slowdown are putting downward pressure on prices. However, a potential easing of rates in Europe and a decline in US gasoline prices offer some counterbalance. Investors will be closely watching upcoming data and events to see which force ultimately prevails.

Tags: BusinessFed Ratefederal characterForeign NewshikeNewsOil pricesOil Prices Slide on Fed Rate Hike ConcernsUS
Eriki Joan Ugunushe

Eriki Joan Ugunushe

Eriki Joan Ugunushe is a dedicated news writer and an aspiring entertainment and media lawyer. Graduated from the University of Ibadan, she combines her legal acumen with a passion for writing to craft compelling news stories.Eriki's commitment to effective communication shines through her participation in the Jobberman soft skills training, where she honed her abilities to overcome communication barriers, embrace the email culture, and provide and receive constructive feedback. She has also nurtured her creativity skills, understanding how creativity fosters critical thinking—a valuable asset in both writing and law.

Related Posts

October Onslaught: Naira Free-Falls as Dollar, Euro, Pound Tighten the Noose
Business & Finance

October Onslaught: Naira Free-Falls as Dollar, Euro, Pound Tighten the Noose

October 22, 2025
October Onslaught: Naira Free-Falls as Dollar, Euro, Pound Tighten the Noose
Business & Finance

October Onslaught: Naira Free-Falls as Dollar, Euro, Pound Tighten the Noose

October 20, 2025
October Onslaught: Naira Free-Falls as Dollar, Euro, Pound Tighten the Noose
Business & Finance

October Onslaught: Naira Free-Falls as Dollar, Euro, Pound Tighten the Noose

October 19, 2025
Next Post
Helicopter Crash Diplomacy: Tragedy Forces Egypt and Iran to Rethink Relations

Helicopter Crash Diplomacy: Tragedy Forces Egypt and Iran to Rethink Relations

Chad’s Political Circus: Masra Bows Out After Dubious Election, Deby Secures Power

Chad's Political Circus: Masra Bows Out After Dubious Election, Deby Secures Power

‘I Faced Criticism for Dressing Too Sexy’ – Tiwa Savage

‘I Faced Criticism for Dressing Too Sexy’ – Tiwa Savage

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Nigeria Set for Return to Beach Soccer at 2024 CAF Africa Cup of Nations

Nigeria Set for Return to Beach Soccer at 2024 CAF Africa Cup of Nations

1 year ago
Should You Move Your Parent to a Senior Center? A Guide for Families

Should You Move Your Parent to a Senior Center? A Guide for Families

1 year ago
Jesus is not in the same Class with Haaland- Ferdinand.

Jesus is not in the same Class with Haaland- Ferdinand.

3 years ago
ISWAP Destroys Electricity Transmission Tower Along Maiduguri-Damaturu Highway

ISWAP Destroys Electricity Transmission Tower Along Maiduguri-Damaturu Highway

2 years ago

Categories

  • Beauty
  • Business & Finance
  • Entertainment
  • Fashion & Lifestyle
  • Food & Nutrition
  • Government
  • Health
  • News
  • Politics
  • Relationship and Life
  • Sports
  • Tech

Topics

2023 Aboki/Bureau De Change (BDC) apc Arsenal buhari Business cbn chelsea china court Davido Dollar Efcc Election Entertainment Euro and Pounds To Naira Exchange Rate For Today exchange rates for the Nigerian Naira (NGN) Fashion federal character federal government Finance food Football Foreign News government health inec Israel lagos Manchester United Naira Naira Black Market exchange rates News Nigeria pdp police Politics president protest Russia Sports tinubu trump ukraine US
No Result
View All Result

Highlights

Baltimore’s Mayor’s Wife Faces Investigation

Should Mayor Brandon Scott Resign?

Sowore Condemns Police “Brutality,” Gives Update on Kanu’s Lawyer and Brother After Prison Visit

Offensive Texts Sink Trump’s Court Nominee, Forcing Sudden Withdrawal

“Music to My Ears”: Trump Cheers Demolition as White House East Wing Comes Down

Amid Terror Alert, Kogi Government’s “Don’t Panic” Message Tests Public Trust

Trending

Nigeria Bans Sex with Minors but Ignores Muslim Marriages to Minors
Government

Nigeria Bans Sex with Minors but Ignores Muslim Marriages to Minors

byEriki Joan Ugunushe
October 22, 2025
0

Nigeria has finally taken what many describe as a bold legal step by passing a bill that...

Sarkozy Gets VIP Treatment in Jail as Police Guard His Cell

Sarkozy Gets VIP Treatment in Jail as Police Guard His Cell

October 22, 2025
Nigeria Bets $220 Million on Jobs While Youths Still Wait for Work

Nigeria Bets $220 Million on Jobs While Youths Still Wait for Work

October 22, 2025
Baltimore's Mayor's Wife Faces Investigation

Baltimore’s Mayor’s Wife Faces Investigation

October 22, 2025
Should Mayor Brandon Scott Resign?

Should Mayor Brandon Scott Resign?

October 22, 2025

We launched Federal Character in February 2021 based on the belief that the world is in need of smarter and more efficient reporting of events shaping our rapidly changing world. We pledged to put our audience first, always.

Recent News

  • Nigeria Bans Sex with Minors but Ignores Muslim Marriages to Minors
  • Sarkozy Gets VIP Treatment in Jail as Police Guard His Cell
  • Nigeria Bets $220 Million on Jobs While Youths Still Wait for Work

Categories

  • Beauty
  • Business & Finance
  • Entertainment
  • Fashion & Lifestyle
  • Food & Nutrition
  • Government
  • Health
  • News
  • Politics
  • Relationship and Life
  • Sports
  • Tech

© 2024 FederalCharacter.com

No Result
View All Result
  • Home
  • News
  • Politics
  • Business & Finance
  • Entertainment
  • Sports
  • Tech
  • Relationship and Life
  • Fashion & Lifestyle
  • Food & Nutrition
  • Health
  • Opinion

© 2024 Federalcharacter.com