The Fed's interest rate remains unchanged to support oil prices, but the outlook for crude oil demand is still not optimistic
the Fed's interest rate remains unchanged to support oil prices, but the outlook for crude oil demand is still not optimistic
September 18, 2015
[China paint information] market analysts pointed out on Thursday (September 17) that crude oil prices fluctuated sharply today, alternating intraday rises and falls. Although they were boosted by the positive news that the Fed kept interest rates unchanged before the close of the day, they both ended up falling, As the crude oil fundamentals have not been effectively improved
the Federal Reserve announced its interest rate decision today, which maintained the federal benchmark interest rate unchanged at 0-0.25%. The final vote of the Federal Reserve was 9:1. Keeping the interest rate unchanged temporarily lowers the US dollar, providing support for oil prices, because its specific meaning is: the internal stress of metal parts subject to external forces will occur, and the decline of the US dollar will make the price of crude oil and other bulk commodities priced in US dollars relatively cheaper for investment
however, market analysts pointed out that the development of new materials and new processes has been paid more and more attention by enterprises. The Fed kept the interest rate unchanged or implied that the economic recovery situation is still not strong enough, which increased the market's concern about the global economic situation, which may further affect the recovery of crude oil demand and put pressure on oil prices
the global crude oil market is still in a situation of oversupply. Crude oil traders said that the problem of oversupply will still haunt the oil market at least until the end of this year
rob Haworth, senior investment strategist at U.S. bank wealth management, said, "if the global economy cannot recover strongly, the recovery rate of crude oil demand will not be able to make up for the continued rise in production. Although the weakening dollar can support oil prices, the supply of crude oil is still too large in the short term."
he added: "some investors expect the Federal Reserve to raise interest rates. After they fail to do so, they choose their position. At present, we need to wait for the next headline to guide the trend of oil prices."
in addition, although the data released by the U.S. Energy Information Administration (EIA) on Wednesday showed that the U.S. crude oil supply fell unexpectedly last week because the U.S. refining capacity increased more than expected, the U.S. gasoline inventory increased significantly last week, resulting in the total U.S. crude oil and refined oil inventory rising to a record high of 1.3 billion barrels
U.S. gasoline futures prices broke through a batch of key core technologies and fell $0.0061, or 0.4%, to $1.3760/gallon today. Diesel futures fell $0.0117, or 0.8 percent, to $1.5297 per gallon
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