Read Time:1 Minute, 10 Second

News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/crude-oil-futures-experience-volatility-as-u-s-federal-reserve-signals-slower-interest-rate-cuts-in-2025/

Crude oil futures saw heightened volatility following the U.S. Federal Reserve’s indication that it plans to slow the pace of interest rate cuts in 2025.

This announcement raised concerns about a potential economic slowdown and its impact on fuel demand, which could weigh on global crude prices. Despite a reduction in U.S. crude stocks and the Fed’s expected 25 basis point interest rate cut, market sentiment was dampened by the central bank’s projection of fewer rate cuts in 2025 due to inflation concerns. This development capped the upward momentum in crude prices.

The market has adopted a cautious outlook on demand for 2025, with uncertainties surrounding the demand-supply balance and doubts about projections of significant demand growth. Although U.S. crude inventories fell by 934,000 barrels in the latest reporting period, overall oil demand has been underperforming expectations, raising the likelihood of a market surplus, despite OPEC+ production cuts. This situation suggests limited potential for substantial upward movement in global crude prices.