Oil prices rose during trading on Monday, September 23, amid geopolitical concerns and expectations that demand for crude will receive support from a reduction in interest rates in America.
In terms of trading, Brent crude futures rose by about 0.8% to $75.11 per barrel. US crude futures also rose by 0.9% to $71.65 per barrel.
The two crudes had risen in the previous session, supported by a cut in interest rates in the US and a decrease in US supplies following Hurricane Frances.
The U.S. Federal Reserve cut interest rates by half a percentage point, a bigger drop in borrowing costs than many had expected. Rate cuts typically boost economic activity and energy demand, but analysts and market participants are concerned about a slowdown in the labor market.
ANZ Bank said sentiment was lifted by the Federal Reserve cutting interest rates amid hopes it could achieve a soft landing for the economy, while a weaker dollar supported investor sentiment.
As for geopolitical tensions in the Middle East, the conflict escalated sharply last week after thousands of pagers and walkie-talkies used by Hezbollah members exploded. Fingers were pointed at Israel, which neither confirmed nor denied responsibility.
