Trump's Fed criticism ignites brief oil market rally
Oil prices on the New York Stock Exchange rose after Monday's decline. This uptick is attributed to the criticism by U.S. President Donald Trump against the Federal Reserve and its chief, Jerome Powell. It's important to note that the increase is less significant compared to the drop at the beginning of the week.
Oil prices on the New York Stock Exchange experienced an increase following a substantial drop on Monday. This decline was prompted by criticism from U.S. President Donald Trump regarding the Federal Reserve's actions and its chairman, Jerome Powell. This situation unsettled global markets, as observed by brokers.
On the New York Stock Exchange NYMEX, the price of a barrel of West Texas Intermediate for May delivery is currently CAD $87.24, marking an increase of 1.03%.
Meanwhile, on the London ICE exchange, the price of Brent crude for June rose by 0.69%, reaching CAD $91.34 per barrel. It should be noted that on Monday, the price of Brent fell by 2.5%.
Criticism of the Fed and its impact on the markets
U.S. President Donald Trump has warned that the American economy might slow down if the Fed does not decide to lower interest rates. This is another instance of the president's criticism against Jerome Powell. Trump is even considering dismissing Powell, which on Monday led to a sell-off of U.S. company stocks, bonds, and the dollar.
Oil was under pressure on Monday due to concerns over the escalation of global trade tensions, which may impact the demand for energy. Vandana Hari, co-founder of the consultancy firm Vanda Insights, notes that it's currently challenging to identify factors that could lead to significant increases in oil prices.
Analysts emphasize that larger oil supplies from OPEC+ alliance countries have recently returned to global fuel markets this month. This raises concerns about a potential oversupply of the commodity, which may exert additional pressure on its prices.
