Brent steady after US Fed cuts interest rates

Brent crude’s price remained mostly steady after the US Federal Reserve cut interest rates at the conclusion of its two-day policy meeting yesterday.

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The Federal Open Market Committee (FOMC) reduced its key interest rate by 25 basis points (bps) to a range between 3.75-4.00%.

This marks the second interest rate cut in 2025, following a 25-bp cut in September. The announcement was largely anticipated by market analysts.

Lower interest rates in the US can boost demand growth by making dollar-denominated commodities like oil more affordable for holders of other currencies.

The latest reduction in interest rates was supported by the US central bank’s latest inflation reading, which is gradually approaching its 2% target.

Market participants will closely watch the FOMC’s upcoming meeting in December, as they await the US Fed’s decision on another potential cut.

“The message from the Fed was textbook caution: yes, another 25-bp cut, but no promise of more,” SPI Asset Management managing partner Stephen Innes remarked.

By Aparupa Mazumder

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