Oil futures fell Friday and were on track for weekly declines after another Federal Reserve official poured cold water on prospects for near-term rate cuts.
Price action
-
West Texas Intermediate crude for April delivery
CL00,
-1.97% CL.1,
-1.97% CLJ24,
-1.97%
fell $1.14, or 1.5%, to $77.47a barrel on the New York Mercantile Exchange. WTI was on track for a 1.3% weekly fall. -
April Brent crude
BRN00,
-1.77% BRNJ24,
-1.84% ,
the global benchmark, was down $1.13, or 1.4%, at $82.54 a barrel on ICE Futures Europe. Brent was off 1.1% for the week based on the front-month contract.
Market drivers
Fed Gov. Chris Waller late Thursday said there was “no rush” to cut interest rates following stronger-than-expected inflation and economic data since the beginning of the year. Waller and other Fed officials have made a concerted effort in the past few weeks to brush back Wall Street’s previous forecasts for rate cuts as early as March.
Strong data “provides the Fed with greater leeway to sustain its restrictive monetary policy for an extended period. This dynamic constrains economic growth and suggests reduced future oil demand, contributing to the price decline,” said Ricardo Evangelista, senior analyst at ActivTrades, in a note.
“Nonetheless, the downside for the barrel’s price remains limited by I-side concerns stemming from ongoing geopolitical turbulence in the Middle East,” he said.
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