Oil prices surge amid FED rate cut speculation and geopolitical tensions
The price surge comes after over 12% of crude production in the U.S. Gulf of Mexico was shut down due to damage caused by Hurricane Francine last week. The disruptions have bolstered oil prices in four of the last five trading sessions.
Oil prices surged on Tuesday, September 17, driven by growing market anticipation that the Federal Reserve may adopt more aggressive interest rate cuts, coupled with escalating geopolitical tensions in the Middle East. Notably, the unrest in Lebanon has exacerbated concerns over regional stability, adding to the market’s anxiety.
WTI increased by $1.10, or 1.6%, settling at $71.41/barrel,
Brent futures rose by 95 cents, or 1.3%, to finish at $73.70/barrel.
The price surge comes after over 12% of crude production in the U.S. Gulf of Mexico was shut down due to damage caused by Hurricane Francine last week. The disruptions have bolstered oil prices in four of the last five trading sessions.
The market also found support from the escalating tension in the Middle East following a series of blasts in Lebanon that resulted in several deaths and more than 2,700 injuries.
Written by: Rochelle Nguyen