Oil Prices Steady Amid Middle East Tensions and Libyan Supply Expectations: Oil prices stabilized at the start of trading on the first day of the last quarter of the year,
as expectations of Libyan supply returning diminished the impact of geopolitical risks in the Middle East.

Content
Oil Prices
Jerome Powell
Bank of Japan

Oil Prices Steady Amid Middle East Tensions and Libyan Supply Expectations

Oil prices stabilized at the start of trading on the first day of the last quarter of the year,
as expectations of Libyan supply returning diminished the impact of geopolitical risks in the Middle East.
Brent crude for December traded near $72 per barrel, following a slight rise on Monday,

with West Texas Intermediate exceeding $68.
The Israeli army announced targeted strikes against Hezbollah targets in southern Lebanon.
Meanwhile, Libya is preparing to resume production after the two rival governments reached a compromise,

according to people familiar with the matter.

Global Brent crude has dropped by nearly 17% in the last quarter and is now down for the year.
Expectations that “OPEC+” will implement production recovery plans and a slowdown in
Even after last week’s massive stimulus plan, China has weighed on prices.
“OPEC+” is set to hold an online monitoring meeting tomorrow,
Wednesday, as the coalition prepares to increase production.
Russian Deputy Prime Minister Alexander Novak said last week
that the group would begin restoring supplies in December and that no new proposals were being discussed.

Jerome Powell: Fed to Cut Rates Over Time as Inflation Steadily Declines

Federal Reserve Chairman Jerome Powell stated that the central bank would lower interest rates “over time,”
reiterating that the overall economy remains strong.
Powell also reaffirmed his confidence that inflation will continue moving toward the Fed’s 2% target,
noting that economic conditions are setting the stage for further easing inflationary pressures.

Speaking at the National Association for Business Economics annual meeting in Nashville, Powell said:
“If the economy evolves as expected, policy will gradually shift towards a more neutral stance over time.”
He added: “But we are not on a predetermined path,”
indicating that policymakers would continue making decisions on a meeting-by-meeting basis based on new economic data.
A neutral policy is one that neither stimulates nor restricts the economy.
The current interest rate, which the Federal Reserve lowered to 4.75%-5% earlier this month,
is still restraining economic activity.

Bank of Japan Signals Pause in Rate Hikes Following Major Fed Cut

A summary of the Bank of Japan’s September meeting showed that
policymakers discussed the need to slow down rate hikes as volatile markets cloud the outlook,
reducing the likelihood of near-term interest rate increases.
The summary also highlighted how the U.S. Federal Reserve’s decision to significantly cut borrowing costs,
which came a day before the BOJ’s meeting on September 19-20,
raised concerns about the U.S. economic outlook.

One member said, “Uncertainty about the U.S. economy and the pace of Federal Reserve rate cuts has increased.
Attention must be paid to the possibility that these factors could negatively affect Japan’s yen’s exchange rate and corporate profits.”

The summary also revealed that even one advocate of future rate hikes called for patience in decision-making,
marking a shift from the previous July meeting when many
the nine-member board voted to raise rates to avoid the risk of extremely high inflation.

Oil Prices Steady Amid Middle East Tensions and Libyan Supply Expectations

Oil Prices Steady Amid Middle East Tensions and Libyan Supply Expectations

Related Topics