Today, the price of crude oil rose slightly after the report of the Federal Reserve (Fed) meeting showed that the inflation rate is still under control and the US Secretary of State, Anthony Blinken is ready to visit the Middle East to ease the Israel-Hamas conflict from spreading.
Now, the price of Brent crude oil rose by 31 cents (0.4%) to $77.90 per barrel and US West Texas Intermediate crude oil rose 43 cents (0.6%) to $72.62 at 2 pm yesterday.
Both crude oil markets showed positive movements in the first week of the year. When prices have reached a stable level from losses due to excess gasoline production and distillate stocks.
At the latest Fed meeting, there was no mention of an expected interest rate cut. However, the discussion focused more on the controlled rate of inflation and the growing concern about the risks of monetary policy tightening for the economy.
Meanwhile, lower interest rates are able to reduce the consumer loan cone and can increase economic growth such as demand for crude oil.
In addition, the conflict in the Middle East also has an impact on crude oil supply concerns. According to Israel's Defense Minister, their army is planning to attack in the northern part of Gaza to kill the leaders of Hamas.
Blinken will travel to the Middle East in the near future for a week of diplomacy and help prevent the conflict from escalating.
US Energy Information Administration data showed gasoline stocks last week posted their highest increase in 30 years and distillate supplies and a proxy for demand fell to their lowest level since 1999.
However, the worsening situation in the Middle East, expected interest rate cuts and the shipping conflict in the Red Sea will give answers to the crude oil market.
