Daily Times

Oil prices decreased on Monday due to ongoing uncertainties surrounding the US Federal Reserve’s (Fed) roadmap for 2025, as well as macroeconomic data pointing to a slowdown in the country’s economic growth.

The international oil benchmark of Brent crude fell by 0.2 to $73.92 per barrel at 10.58 am local time (0758 GMT), down from the previous session’s close of $74.06.

The US benchmark West Texas Intermediate also declined by 0.2% to $70.49 per barrel, compared to $70.64 at the close of the prior session. Analysts noted that market participants are closely watching the Fed’s monetary decisions and statements by Chairman Jerome Powell following the Fed’s meeting for insights into future policy actions. These uncertainties are contributing to volatility in the markets and are expected to impact oil prices. It is anticipated that the Fed will cut interest rates by 25 basis points this week.

Meanwhile, macroeconomic data from the US showed signs of slowing economic growth in the world’s largest oil consumer, putting additional pressure on prices.

The number of people applying for unemployment benefits for the first time in the US rose to 242,000 in the week ending Dec. 7, surpassing market expectations. This increase raised concerns about demand, supporting the downward movement in oil prices. However, concerns over reduced demand were somewhat alleviated by expectations surrounding US policy under President Donald Trump, including potential tax cuts, tariffs, and immigration restrictions, which could provide some support to the economy. These factors helped to limit the downward price movements. Moreover, expectations that a stimulus package would soon be announced in China, the world’s largest oil importer, could boost economic growth and oil demand, which would support price rises.