Energy
Monday, February 5th, 2024 3:41 pm EDT
Key Points
- Oil prices fell due to the Federal Reserve’s cautious stance on interest rate cuts and the U.S. push for a prolonged pause in the Israel-Hamas War.
- West Texas Intermediate (WTI) for March dropped 0.96% to $71.63 a barrel, while Brent for April was down 0.66% to $76.79 a barrel.
- Federal Reserve Chairman Jerome Powell’s announcement of unlikely rate cuts in March, coupled with a stronger dollar, influenced the decline in oil prices. Geopolitical tensions, including U.S. efforts to secure a truce in Gaza, also impacted oil traders’ sentiments.
Oil prices experienced a decline on Monday, influenced by the Federal Reserve’s cautious approach to interest rate cuts and the U.S. pursuit of an extended pause in the Israel-Hamas War. The West Texas Intermediate (WTI) contract for March dropped by 0.96%, reaching $71.63 a barrel, while the Brent contract for April was down 0.66%, trading at $76.79 a barrel. Federal Reserve Chairman Jerome Powell’s announcement that rate cuts in March are unlikely, coupled with a robust jobs report, contributed to a stronger dollar, making crude oil more expensive for holders of other currencies. The geopolitical risk in the Middle East, specifically the U.S. efforts to secure a truce in Gaza amid escalating tensions, also influenced oil traders. U.S. Secretary of State Antony Blinken’s visit to the region aims to negotiate a prolonged humanitarian pause in the conflict, potentially impacting crude supplies if the situation leads to disruptions in the Strait of Hormuz. The recent U.S. airstrikes against Iran-allied groups in Iraq and Syria, as well as renewed strikes against Houthi militants in Yemen, underscore the delicate geopolitical landscape influencing oil prices.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/05/crude-oil-prices-today.html
