Energy companies experienced a boost as the Federal Reserve announced an increase in its predicted number of rate cuts for 2024.
During their latest meeting, the Fed decided to keep interest rates steady and indicated that inflation had seen faster improvement than expected. This development has now opened the possibility of rate cuts in the coming year.
Projections released after the two-day meeting revealed that most officials have penciled in three interest rate cuts for 2024.
In other news, Bernard Looney, who suddenly resigned in September due to past relationships with colleagues, was formally dismissed from his position as Chief Executive Officer at BP. As a result, his salary has been terminated.
The Organization of the Petroleum Exporting Countries (OPEC) has made no changes to its expectations for global oil demand for this year and the next. However, amidst declining oil prices, the cartel has been unable to halt these reductions. On a more positive note, OPEC has raised its forecast for global economic growth in 2023.
Governments from over 190 countries at the United Nations climate conference have approved an agreement that urges the world to move away from fossil fuels. This unprecedented signal signifies governments’ determination to reduce their reliance on coal, oil, and natural gas in their efforts to combat global warming.
Following the Fed’s statement, oil futures experienced a slight increase of over 1%. However, prices remained below the psychologically significant threshold of $70 per barrel in New York.