Oil Gains as Traders Await Powell Clues on Interest-Rate Outlook

(Bloomberg) — Oil pulled back some of its weekly loss with markets advancing in the lead up to Federal Reserve Chair Jerome Powell’s Jackson Hole speech that will give clues about the path for US interest rates.

Most Read from Bloomberg

Brent crude climbed near $78 a barrel, but was still down more than 2% on the week. Stock markets were also higher Friday before Powell’s speech amid speculation he may open the door for interest rate cuts.

Data this week showed US manufacturing contracting at the fastest pace this year, as well as signs of labor market softness. In Europe, meanwhile, futures for diesel — a workhorse industrial fuel — have retreated to the lowest level in 14 months.

Oil has shed all of its year-to-date gains as the impact of OPEC+ supply curbs has been overshadowed by a poor economic outlook in major economies, with China showing signs of weakness along with the US. While the cartel led by Saudi Arabia and Russia has said it aims to ease some output curbs in the fourth quarter, crude’s slide makes that plan more challenging.

“In the short term, Brent prices have declined ahead of fundamentals,” Morgan Stanley analysts including Martijn Rats said in a note, while paring price forecasts for upcoming quarters. “However, with demand set to slow after summer, and both OPEC and non-OPEC supply to increase from the fourth quarter, we foresee a softening balance, turning to surplus in 2025.”

In the Middle East, meanwhile, Israeli negotiators arrived in Cairo for talks aimed at cementing an agreement to pause the war in Gaza between Israel and Hamas, a step that could reduce tensions in the crude-producing region.

To get Bloomberg’s Energy Daily newsletter into your inbox, click here.

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.

  • Related Posts

    The latest inflation report keeps the Fed on track for a quarter-point rate cut. Wall Street isn’t satisfied.

    A fresh reading on consumer prices is likely to keep the Federal Reserve on track to cut interest rates next Wednesday by a quarter percentage point, disappointing some on Wall…

    CPI: Car prices down again in August, with used vehicles down over 20% from recent highs

    Car prices kept sliding in August — among the most of any major category in the Consumer Price Index (CPI) over the last year — as vehicle prices move toward…

    Leave a Reply

    Your email address will not be published.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

    You Missed

    Supreme Court Holds Life Insurance Proceeds Paid to Closely-Held Corporation to Fund Buy-Sell Agreement Increases Estate Tax on Deceased Shareholder’s Estate

    • By admin
    • September 11, 2024
    • 1644 views
    Supreme Court Holds Life Insurance Proceeds Paid to Closely-Held Corporation to Fund Buy-Sell Agreement Increases Estate Tax on Deceased Shareholder’s Estate

    BIOSECURE Act: Anticipated Movement, Key Provisions, and Likely Impact

    • By admin
    • September 11, 2024
    • 258 views
    BIOSECURE Act: Anticipated Movement, Key Provisions, and Likely Impact

    The latest inflation report keeps the Fed on track for a quarter-point rate cut. Wall Street isn’t satisfied.

    • By admin
    • September 11, 2024
    • 129 views
    The latest inflation report keeps the Fed on track for a quarter-point rate cut. Wall Street isn’t satisfied.

    CPI: Car prices down again in August, with used vehicles down over 20% from recent highs

    • By admin
    • September 11, 2024
    • 140 views
    CPI: Car prices down again in August, with used vehicles down over 20% from recent highs

    Economic Indicators You Should Know for Investment

    • By admin
    • September 11, 2024
    • 100 views
    Economic Indicators You Should Know for Investment

    A Beginners’ Guide to Managing Your Money

    • By admin
    • September 11, 2024
    • 73 views
    A Beginners’ Guide to Managing Your Money