Oil Dips As Investors Weigh Up US Rate Cut Outlook

The New Diplomat
Writer

Ad

Why Africa’s Security Needs Urgent Attention, Gambari Offers Insights

In a powerful goodwill message at the inaugural African Chiefs of Defence Staff Summit in Abuja, eminent Scholar-Diplomat and former Nigerian Foreign Affairs Minister, Professor Ibrahim Agboola Gambari, issued a clarion call to redefine Africa’s security framework to secure sustainable peace and stability. Speaking at the summit, themed “Combating Contemporary Threats to Regional Peace and…

Dangote Group mourns as Phyna’s sister Ruth Otabor Dies after truck accident

By Obinna Uballa The Dangote Group has expressed deep sorrow over the death of Mrs. Ruth Otabor, sister to Big Brother Naija Season 7 winner, Ijeoma “Phyna” Otabor, who succumbed to injuries sustained in a recent accident involving one of the company’s trucks in Auchi, Edo State. In a statement on Sunday, the company said…

How Szoboszlai’s Stunner Sunk Arsenal in Liverpool Triumph

Liverpool on Sunday defeated Arsenal in a 1-0 victory at Anfield Stadium. Liverpool secured all three points after Dominik Szoboszlai scored a stunner from a 30-yard free-kick. This means that Liverpool maintained their perfect start to the 2025-26 Premier League season. The New Diplomat reports that the match was a tense affair, with Arsenal’s defense…

Ad

By Robert Harvey

Oil prices extended losses from the previous session on Wednesday, as growing expectations that cuts to U.S. interest rates will take longer than thought outweighed ongoing concerns over attacks on shipping in the Red Sea.

Brent crude futures fell by 41 cents, or 0.5%, to $81.93 a barrel by 1223 GMT, while U.S. West Texas Intermediate crude futures (WTI) were lower by 39 cents, or 0.51%, at $76.65.

The Brent and WTI contracts fell from near three-week highs on Tuesday, dropping by 1.5% and 1.4%, respectively.

The premium of front-month April Brent futures over September contracts – known as backwardation, and a sign of a tightly supplied market – hit its highest since Oct. 31 on Monday at $3.64 a barrel, though has since cooled off to around $3.37.

“Oil prices took yesterday as day of correction which was inspired by a lack of any further conflict news from the world’s clash points as markets had to settle on what was bothering the macro world,” PVM analyst John Evans said in a note published on Wednesday morning.

Concerns that rate cuts by the Federal Reserve could take longer than thought have weighed on the outlook for oil demand. U.S. inflation data last week pushed back expectations for an imminent start to the Fed’s easing cycle, with economists polled by Reuters now forecasting a cut in June.

“Investors yet again felt a hiccup in pivot prediction as to when the most important central bank of all, the Fed, might alter course,” Evans added.

Minutes from the Fed’s January monetary policy meeting, due at 1900 GMT, will offer further clues on the timing of potential interest rate cuts.

But Houthi attacks on commercial vessels in the Red Sea and Bab al-Mandab strait have continued to stoke concerns over freight flows through the critical waterway. Drone and missile strikes have hit at least four vessels since last Friday.

Diplomacy in the Middle East continues to face setbacks. Washington on Tuesday again vetoed a draft United Nations Security Council resolution on the Israel-Hamas war, blocking a demand for an immediate humanitarian ceasefire. The U.S. is instead pushing for the Security Council to adopt a resolution tying a ceasefire to the release of Israeli hostages by Hamas.

Source: Reuters

Ad

X whatsapp