Will the FED cut interest rates to "stop" the decline in oil prices?

Oil prices are also under pressure to fall. Illustration photo, source: Ngoc Le

On July 16, information from the Vietnam Commodity Exchange (MXV) said that world oil prices fluctuated in the first trading session of the week after a series of negative data from China. At the end of the session, WTI oil prices decreased by 0.36% to 81.91 USD/barrel, Brent crude oil decreased by 0.21% to 84.85 USD/barrel.

China's economic growth slowed in the second quarter, with GDP rising just 4.7% year-on-year, missing market expectations of 5.1%, according to data from the National Bureau of Statistics (NBS). This is also the country's lowest growth rate since the first quarter of 2023.

Meanwhile, China's industrial output rose just 5.3% year-on-year in June, down from 5.6% in May. The slowdown in the world's No. 1 crude oil importer has put pressure on the market.

In addition, crude oil throughput at Chinese refineries also fell last month following a sharp 11% drop in imports in June. China's national refining capacity fell 3.7% in June from a year earlier to 58.32 million tonnes, or about 14.19 million barrels per day.

On the other hand, the market is placing great faith in the FED cutting interest rates in September. Expectations of a FED rate cut have limited the price decline.

Source: https://laodong.vn/kinh-doanh/fed-lieu-co-giam-lai-suat-de-chan-dung-da-giam-cua-gia-dau-1367145.ldo