Oil Prices Surge Over 2% Following Powell's Comments on US Rate Cuts
OIL & GAS

Oil Prices Surge Over 2% Following Powell's Comments on US Rate Cuts

Oil prices surged by more than 2% after U.S. Federal Reserve Chair Jerome Powell indicated the possibility of future interest rate cuts. His remarks spurred optimism about economic growth, increasing investor confidence in the demand for energy.

During his speech, Powell acknowledged the possibility of cutting interest rates if inflation pressures continue to ease. This statement alleviated market concerns about a prolonged economic slowdown, which had been weighing heavily on oil prices in recent months. A more favorable interest rate environment is seen as potentially stimulating economic activity and, by extension, boosting demand for oil.

Brent crude rose by 2.5% to settle at $85.32 per barrel, while U.S. West Texas Intermediate (WTI) crude climbed 2.3% to reach $81.74 per barrel. Analysts noted that Powell?s comments gave a significant boost to market sentiment, with investors anticipating stronger demand for fuel if rate cuts materialise.

Additionally, supply concerns persist as OPEC+ continues to implement production cuts. With a tightening supply and potential demand recovery on the horizon, oil prices are expected to remain buoyant. Powell?s remarks also coincided with signs of easing inflation in the U.S., providing further support for a more accommodative monetary policy stance in the future.

Oil prices surged by more than 2% after U.S. Federal Reserve Chair Jerome Powell indicated the possibility of future interest rate cuts. His remarks spurred optimism about economic growth, increasing investor confidence in the demand for energy. During his speech, Powell acknowledged the possibility of cutting interest rates if inflation pressures continue to ease. This statement alleviated market concerns about a prolonged economic slowdown, which had been weighing heavily on oil prices in recent months. A more favorable interest rate environment is seen as potentially stimulating economic activity and, by extension, boosting demand for oil. Brent crude rose by 2.5% to settle at $85.32 per barrel, while U.S. West Texas Intermediate (WTI) crude climbed 2.3% to reach $81.74 per barrel. Analysts noted that Powell?s comments gave a significant boost to market sentiment, with investors anticipating stronger demand for fuel if rate cuts materialise. Additionally, supply concerns persist as OPEC+ continues to implement production cuts. With a tightening supply and potential demand recovery on the horizon, oil prices are expected to remain buoyant. Powell?s remarks also coincided with signs of easing inflation in the U.S., providing further support for a more accommodative monetary policy stance in the future.

Next Story
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?