Fed Holds Interest Rates at 23-Year High
May 3, 2024
The energy complex was mixed in yesterday’s trading as it continues to consolidate looking for direction. Most traders are very unlikely to want to go home short the market for the weekend, so the market will most likely see short covering today for the weekend and then continue to consolidate with the underlying Middle East tension the major factor for traders to keep an eye on.
JP Morgan is still forecasting for draws to crude oil inventories to come in May through August offering support to prices. They also are still calling for crude oil price to be in the high $80/$90 through May and $85 thereafter. They also see OPEC+ alliance extending their voluntary cuts beyond the second quarter.
The news that the Fed was basically taking a rate hike out of the equation was seen by traders as supportive to crude oil prices, but the rebound of crude so far is muted. Crude is on pace to show the largest weekly price decline in roughly three months.