Oil prices rise on hopes of first U.S. interest rate cut in 10 years

Oil prices rose for a fourth day on Tuesday (July 30th) on optimism that the U.S. Federal Reserve is about to cut interest rates for the first time in more than ten years, which should support economic and fuel demand growth in the world’s biggest oil user, Reuters reports.

Brent crude LCOc1 rose 33 cents, or 0.5%, to $64.04 a barrel by 0435 GMT, after gaining 0.4% the previous session. 

U.S. crude CLc1 was up 30 cents or 0.5%, at $57.17 a barrel, having risen 1.2% on Monday. 

So-called dovish monetary policy in the United States, where the central bank reduces interest rates, would “support a continuation in global expansionary activities and fuel demand growth” for the second half of 2019, Benjamin Lu, an analyst at Phillip Futures in Singapore, said in a note. 

“If the Fed is a little more dovish and prices in a 75 basis points cut ... we might see oil pushing up towards $60,” Lu said by phone, referring to U.S. crude. 

Still, “demand side concerns are the shadow over oil prices,” he added. 

U.S. central bankers will begin their two-day meeting later on Tuesday and are expected to lower borrowing costs for the first time since the depths of the financial crisis more than a decade ago. 

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Gary Cartwright

Gary Cartwright

Gary Cartwright is publishing editor of EU Today. 

An experienced journalist and published author, he specialises in environment, energy, and defence.

He also has more than 10 years experience of working as a staff member in the EU institutions, working with political groups and MEPs in various policy areas.

Gary's latest book WANTED MAN: THE STORY OF MUKHTAR ABLYAZOV: A Manual for Criminals on How to Avoid Punishment in the EU is currently available from Amazon 

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