New York’s West Texas Intermediate (WTI) crude futures ended lower Thursday (August 25), with markets pressured by concerns that An increase in interest rates by the US Federal Reserve (Fed) will result in a slowdown in oil demand. Investors are also concerned that if progress on a nuclear deal between Iran and the West progresses, It may pave the way for Iran to return to oil exports again.
- The WTI crude oil contract was delivered in October. It fell $2.37, or 2.5%, to close at $92.52 a barrel.
- The Brent crude oil contract (BRENT) delivered in October. It was down $1.88, or 1.9%, at $99.34 a barrel.
Nuclear deal negotiations between the US, the European Union (EU) and Iran are ongoing now. Iran said it had received a response from the United States about a final proposal drafted by the EU for a revival of the 2015 nuclear deal.
Investors are concerned that If talks progress and the US compromises Iran’s demands It may open the way for Iran to return to oil exports on the market again.
The market has also been pressured by concerns that The Fed’s rate hikes could hurt oil demand, with the latest CME Group’s FedWatch Tool indicating that investors weighed 60.5% that the Fed would raise interest rates by 0.75% to 3.00-3.25% on the Meeting on September 20-21 and weighted only 39.5% that the Fed will raise interest rates by 0.50%.
Investors are keeping an eye on the Fed’s annual meeting in Jackson Hole, Wyoming, which kicked off yesterday. And will end tomorrow (Aug 27), with the Fed expected to signal more clearly about the US economy. interest rate direction Including the downgrade of the balance sheet (QT) amid concerns about inflation.
The theme for this year’s meeting is “Reassessing Constraints on the Economy and Policy”, with Fed Chairman Jerome Powell giving a speech today (Aug. 26) at 10 a.m. time. 21.00 Thai time
By InfoQuest News Agency (26 Aug 65)
Tags: lifestyle, oil market, WTI oil, crude oil, oil price