Oil prices steady as Russia warns of output cuts
Oil prices barely budged this Wednesday (September 17, 2024), with Brent at $68.46 and US crude at $64.51 per barrel.
This calm follows a recent jump caused by Ukrainian drone attacks on Russian oil sites.
Meanwhile, Russia's oil pipeline monopoly Transneft has warned producers they may have to cut output following the drone attacks, according to industry sources.
US crude stockpiles drop
US crude stockpiles dropped by 3.42 million barrels last week—more than expected—while distillate stocks went up, both helping keep oil prices afloat despite economic worries.
The EU is also talking about speeding up its phase-out of Russian fossil fuels, which could tighten supplies even more.
Fed meeting today
Everyone's watching the US Federal Reserve meeting today. If they cut interest rates by 0.25%, it could boost economic growth and oil demand worldwide.
With so much uncertainty—from war to policy changes—oil prices are still a big signal for where the global economy is heading next.