WTI Crude Oil prices fell slightly below $71.5 a barrel on Monday. This drop came after prices rose by 6% last week, mainly because investors expected less supply wouldn’t be available.
This expectation arose due to new sanctions on Russia and Iran—two big oil producers—and hopes that China would boost its economy, potentially increasing oil demand.
Central Banks Cut Rates Boosting Oil Prices
Recent decisions by central banks in Canada, Europe, and Switzerland to lower interest rates also helped support oil prices. However, attention is now turning to what the Federal Reserve will decide later this week’s meeting.
They are anticipated to cut interest rates by 0.25%, which could help the economy grow and increase the need for oil.
In other news, the United Arab Emirates, a member of the oil-producing group OPEC+, said it would reduce its oil shipments starting early next year to better meet its production goals.