Commodities
Oil Gains in Risk-On Mood as Powell Says It’s Time to Cut Rates
- WTI rallies above $74 a barrel, but cements weekly loss
- Crude has been weighed down by US, China economic outlook
This article is for subscribers only.
Oil extended gains alongside risk assets after Federal Reserve Chair Jerome Powell said the time has come to cut interest rates, but the commodity still declined for the week amid a soft economic outlook in major economies.
West Texas Intermediate advanced 2.5% to settle above $74 a barrel. Stock markets also rallied close to all-time highs as Powell’s comments cemented expectations for a rate cut at the central bank’s next gathering in September. Crude traders largely expect lower interest rates to spur economic growth and increase crude demand.