NEW YORK, (TDI): Brent futures rose to $75.09 a barrel up by $1.44, or 2pc, it is rebounding from last week’s levels below $69 a barrel, various media organizations reported on Friday.
The US crude gained $1.53, or 2.1pc, to $72.44 a barrel and all this changes in prices was noted after the Federal Reserve’s large cut in US interest rates, helping global benchmark Brent crude recover from its lowest in nearly three years hit last week, the reports suggest.
The US central bank cut interest rates by half a percentage point on Wednesday that is widely believed to have initiated changes in the market.
Economic experts opined that such a cut is essential for economic activities but it also reflect poor labor market and it also discourages investors in certain sectors of the economy.
Read More: Russia-Ukrain crises: Global oil prices at record high
While crises in the Middle East and tension with Russia are also considered major factors in the hiking prices.
Some of the analysts maintain that weakening demand from China with slowing economy is also a bar on oil’s gain.
Also Read: OPEC Postpones Increase in Oil output
While experts differ on the high oil prices’ effect on economies in the world. Some opine that boost in prices surge economic activities as big corporations in oil sector get more spaces while other say that it affect lay man, transportation and other sectors in the economy negatively.
Such effects are intensified in the developing countries specifically.
