for Interest Rates
Looser monetary policy would help commodity markets, but the Fed’s softening line also highlights the growing fear of an economic slowdown.
The combination of higher interest rates and rising drilling costs could stifle the rebound in shale production. While the oil majors will likely take higher interest rates in stride, more expensive credit would threaten the financial health of small E&Ps.
OPEC policy, fresh data from agencies such as the IEA and the EIA, price speculators, and geopolitical disruptions are all known as market movers. But there’s another important player in oil price movements, and that’s the Federal Reserve.
Oil prices, which have sunk to fresh six-year lows, are on their longest losing streak in about thirty years, and the bear market is not over yet: The coming months offer more threats to the crude market, on top of the ongoing surplus in supply.