Oil Holds Higher, Market Weighs Supply & Fed Impact
Oil prices stabilized after weekly gains, with Brent nearing $68/barrel and WTI above $63. Risk sentiment strengthened following the Fed's signal that it was open to an interest rate cut next month, which could potentially boost economic activity and weaken the dollar—a combination typically positive for energy commodities.
On the supply side, the US threatened to double import tariffs from India to 50% in response to purchases of Russian oil. However, Indian officials said local refineries would continue to source Russian crude. Meanwhile, the market continues to weigh obstacles to Russian exports, efforts to resolve the Ukraine conflict, and headwinds from the US-led trade war. Concerns about oversupply persist as OPEC+ restarts some temporarily shut capacity, sending global oil prices down by around 9% so far this year.
Several analysts believe that market attention is still focused on short-term issues, while downside risks from fundamentals have not yet been fully reflected in prices. The positive impact of the Fed's interest rate cut is also expected to take time to be seen on fuel demand, so near-term price movements are potentially limited.
Trading activity was lighter than average at the start of the Asian session due to a public holiday in the UK, keeping price movements relatively subdued. At 8:46 a.m. Singapore time, Brent October crude rose 0.1% to $67.79/barrel, while WTI October crude gained 0.1% to $63.75/barrel. (ayu)
Source: Newsmaker.id
