Filed under: International markets, Middle East, Economic data, Commodities, Oil, Federal Reserve, Recession

When the Federal Reserve finishes up its two-day meeting this afternoon, it is widely expected that we will be in store for at least another 50 basis point cut, and possibly more. In anticipation for another cut, oil prices have moved higher today, picking up $0.59 to $92.23.

It was just last week that the Federal Reserve made the decision to step in with an emergency 75 basis point rate cut, but the consensus on Wall Street is that another rate cut is coming today, with the intended goal of putting a curb on America’s slowing economic landscape. Oil traders appear to be banking on news of lower rates, and that has resulted in today’s upward move in oil prices.

Since America is currently the world’s largest oil consumer, any economic slowdown occurring in America will definitely have an impact on global oil demand. As recession fears have become more widespread since the start of the year, oil prices saw a 10%+ correction, falling from a recent $100 a barrel down to nearly $85 last week.

Continue reading Oil moves higher as traders look to the Fed for further rate cuts

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This entry was posted on Wednesday, January 30th, 2008 at 4:20 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.