Interest Rate Cut Could Stimulate Economy
September 19, 2024
The Fed announced late in the afternoon yesterday that they were cutting the interest rate by 50 points. That puts the rate at 4.5% to 4.755. More rate cuts are expected later this year and next year and the market sees those cuts as a chance to stimulate economic growth which helps energy demand.
Now that the market got the bigger rate cut of 50 points which many wanted now trades are questioning the health of the US economy. Did the Fed make the bigger cut because the economy is not as heathy as many thought, and it needed the extra bump? Is the threat of a recession still a possibility? Now we just have more questions, so it is going to be interesting to see how these markets react in the coming days as they short out all this out.
The DOE inventory report had crude oil inventories down 1.63 million barrels, gasoline inventories up 69,000 barrels, and distillates up 125,000 barrels.
Propane inventories built 2.29 million barrels putting total stocks at 99.105 million. Midwest stocks were up 655,000 putting total stocks at 26.973 million.
Gulf Coast stock were up 902,000 barrels putting total Gulf Coast stocks at 57.829. As has been the case propane inventories continue to be at very comfortable levels.
Energy prices are trading up here this morning.