Oil Prices Rise, Dollar Swings on Powell Dismissal Rumors
World oil prices experienced slight gains on Thursday (July 17th), influenced by volatility in the currency market due to speculation about the future of Fed Chairman Jerome Powell. Brent traded at $68.38 per barrel, after previously touching $69. West Texas Intermediate (WTI) also showed a similar pattern, strengthening amid uncertainty over the direction of US interest rate policy, fueled by President Donald Trump's push to lower interest rates.
Although Trump denied he would fire Powell, the rumors have significantly shaken the US dollar exchange rate. A weaker dollar makes oil prices—priced in dollars—more attractive to global buyers. UBS analyst Giovanni Staunovo stated that market participants are beginning to adjust their views on the direction of Fed policy, which ultimately contributes to the commodity market.
However, oil prices are also being pressured by lingering supply concerns. In the US, oil stocks at the Cushing storage hub continue to decline. In fact, distillate stocks are at their lowest seasonal level since 1996. In the Middle East, drone attacks on oil fields in northern Iraq's Kurdistan region disrupted production of around 200,000 barrels per day, even though the region has not exported crude oil since the export pipeline was shut down two years ago.
Brent crude for September delivery remained steady at $68.38 per barrel at 10:04 a.m. London time, while WTI for August traded around $66.40. Geopolitical tensions and global monetary policy remain key factors influencing the direction of oil prices in the near term.
Source: (ayu-newsmaker)
