Oil Prices Rebound as Markets Focus on Tighter Supply Outlook
Oil prices rebounded on September 14 as markets shifted their focus to tighter crude supply outlooks.
Brent crude futures rose 36 cents, or 0.4%, to $92.24 a barrel. The West Texas Intermediate crude (WTI) rose 35 cents, or 0.4%, to $88.87 per barrel.
The International Energy Agency (IEA) said on September 13 that Saudi Arabia and Russia’s extension of oil output cuts to the end of 2023 will mean a substantial market deficit through the fourth quarter.
The IEA also largely stuck by its estimates for demand growth in 2023 and 2024.
Gold Prices Edge Higher as Investors Anticipate Fed Rate Hike Pause
Gold prices crawled higher on September 14 from nearly three-week lows as investors anticipated a pause in interest rate hike at the US Federal Reserve’s policy outcome on September 20.
Spot gold added 0.2% to $1,909.21 per ounce by 0318 GMT, having hit its lowest level since August 25 on September 13 at $1,905.10.
US consumer prices increased at the fastest rate in 14 months in August due to rising energy prices. However, the ‘core measure, which excludes volatile food and energy items, remained on its meandering path.
The Fed is expected to raise interest rates by 25 basis points at its September meeting, but some investors are betting that the central bank could pause its tightening cycle in the coming months.
The outlook for oil and gold prices will depend on a number of factors, including the pace of economic growth, the direction of inflation, and the actions of the Fed.
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