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Oil Prices: The Fed’s Next Move: Catalyst or Calm for Crude?

🛢️ Current Range

WTI crude is hovering at $62–$65. Stuck in neutral — but for how long?


💸 Rate Cuts & the Dollar

  • Lower rates weaken the dollar
  • Cheaper oil in foreign markets can lift demand
  • Stronger economic activity = more energy use

📚 History Says…

  • Dollar down, oil up — that pattern has played out before
  • Stock market optimism often signals rising oil demand too

🌍 Supply Side

  • OPEC+ is unwinding cuts carefully
  • Russian refineries face attacks
  • Saudi spare capacity looks thin
  • Can the market really count on a supply flood?

📈 Inflation Watch

  • Oil isn’t just fuel — it’s an inflation signal
  • Higher prices raise transport & production costs across the board
  • Powell once said every $10 bump in oil adds 0.2% to inflation, cuts 0.1% from GDP

❓ The Big Question

  • Rate cuts + weak dollar + supply risks = bullish setup
  • But has the market already priced this in?
  • September 17’s Fed decision looms large

🔍 Bottom Line

Oil feels less like a barrel trade right now and more like a barometer of sentiment.
The next move may depend less on supply and demand — and more on what Powell says next.


Disclaimer: This post reflects publicly available information and should not be interpreted as a solicitation. Always conduct your own due diligence and consult a financial advisor before making investment decisions.