World oil prices have increased again. (Credit : REUTERS)

The Fed's ruling encourages the strengthening of world oil prices

Siti Fatimah Adri
Politics & Economic
International
Jul 30, 2019
2008
Continuing the increase that occurred in trading on Monday (7/29), world oil prices have increased again.

According to Reuters, the strengthening of world oil prices on Tuesday (30/7) was triggered by the prospect of lowering The Fed's benchmark interest rate. Brent oil futures have gained 0.25 percent to as low as US $ 63.71 per barrel, while United States (US) West Texas Intermediate (WTI) oil is in the range of US $ 56.87 per barrel.

The prediction arose amid market pessimism over trade war negotiations between the US and China, as well as a slowdown in the US economy

The Fed's benchmark interest rate this week is indeed the focus of investors. Because if the US central bank cuts its benchmark interest rate, this will be the first since the financial crisis that occurred more than a decade ago.

US economic growth in the second quarter of 2019 only grew 2.1 percent on an annual basis (year on year / yoy). That figure is lower than the previous achievement which increased 3.1 percent. This is then provoking the Fed to cut their benchmark interest rate.
But interestingly, the Fed's decision in the midweek turned out to also be able to encourage the strengthening of oil prices. Where world oil prices have increased quite high.

Source: https://m.cnnindonesia.com/ekonomi/20190730062038-85-416617/sentimen-penurunan-bunga-the-fed-angkat-harga-minyak