Fed rate cuts trigger market concerns, pushing crude oil prices down.

TraderKnows
TraderKnows
09-19

The Federal Reserve's rate cut raises concerns about the economic outlook, the dollar rebounds, and oil prices turn downward after failing to break a key resistance level.

On Thursday (September 19) during the early Asian session, international oil prices initially surged before declining. U.S. crude oil futures traded around $70.28 per barrel. Previously, the Federal Reserve's unexpected 50 basis point rate cut sparked concerns about the health of the U.S. economy, putting downward pressure on oil prices. Additionally, comments from Fed Chairman Powell led to a rebound in the U.S. dollar, further depressing oil prices.

Although rate cuts usually stimulate economic activity and energy demand, increased concerns about a slowdown in the labor market have limited the upward momentum of oil prices. Meanwhile, even though U.S. crude oil inventories fell by 1.6 million barrels to their lowest level in a year, the market attributed this to short-term weather factors, offering limited support to oil prices.

In other geopolitical events, tensions in the Middle East and Ukraine's drone attacks on Russia have also drawn market attention. However, weak overall oil demand and ongoing pressure from the economic slowdown in Asia suggest that oil prices face further downside risks in the short term.

Business English

Business Cooperation Telegram Eng

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End

Wiki

Interest rate cut

A rate cut refers to the central bank adjusting the interest rate level so that it is lower than before, as a form of monetary policy. It is a means by which the central bank affects the supply and demand relationship in the money market, money creation, and the level of interest rates by changing the level of interest rates. Rate cuts are usually used to counter inflation, stimulate economic growth, or alleviate economic downturn pressures.

Organization

Risk Warning

TraderKnows is a financial media platform, with information displayed coming from public networks or uploaded by users. TraderKnows does not endorse any trading platform or variety. We bear no responsibility for any trading disputes or losses arising from the use of this information. Please be aware that displayed information may be delayed, and users should independently verify it to ensure its accuracy.

Contact Us

Social Media

Region

Region

Contact