{"id":8494,"date":"2023-11-02T12:12:54","date_gmt":"2023-11-02T12:12:54","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=8494"},"modified":"2023-11-02T12:12:54","modified_gmt":"2023-11-02T12:12:54","slug":"oil-rises-1-after-fed-keeps-rates-unchanged","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/8494\/","title":{"rendered":"Oil rises 1% after Fed keeps rates unchanged"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Oil gained 1% on Thursday to snap its three-day decline, as risk appetite returned to financial markets after the U.S. Federal Reserve kept benchmark interest rates on hold.<\/p>\n

Brent crude futures rose $1.03, or 1.22%, to $85.66 a barrel by 1149 GMT, while U.S. West Texas Intermediate crude futures gained $1.02, or 1.27%, to $81.46 a barrel.<\/p>\n

Oil’s rally tracked gains across financial assets after the Fed kept its benchmark interest rate unchanged at 5.25%-5.50% at its latest meeting on Wednesday.<\/p>\n

“Asset markets reacted positively to the Fed yesterday and I think oil has followed that by moving a bit higher,” said Callum Macpherson, head of commodities at Investec.<\/p>\n

Policymakers struggled to determine whether financial conditions may be tight enough already to control inflation, or whether an economy that continues to outperform expectations may need still more restraint.<\/p>\n

U.S. inflation held at 3.4% in September for the third consecutive month.<\/p>\n

“There is still some way to go to achieve the 2% target, nonetheless monetary tightening has been working effectively and additional rate increase would probably do more harm than good,” Tamas Varga, analyst at broker PVM, said.<\/p>\n

Meanwhile in Europe, a contraction in manufacturing activity in the euro zone deepened in October, with Purchasing Managers’ Index (PMI) falling by 0.3 points on the month to 43.1. A score of below 50 signals contraction.<\/p>\n

A Bank of England meeting later on Thursday is expected to result in interest rates being held steady.<\/p>\n

Investors will also be watching for developments in the Middle East, which has kept oil markets on edge as a wider conflict could disrupt oil supplies around the region.<\/p>\n

Fighting raged on around Gaza City on Thursday as advancing Israeli tanks and troops encountered fierce resistance from Hamas militants.<\/p>\n

Updated on