99% Fed Rate Hold Odds Vs. $100 Oil: Wednesday's Make-Or-Break Moment
Portfolio Pulse from Piero Cingari
Oil prices have risen by nearly 30% since June due to supply constraints from major oil-producing nations and resilience in the U.S. economy. The United States Oil Fund ETF (NYSE:USO) breached the $91 per barrel mark on Tuesday. Sustained oil prices above $100 per barrel could have major implications on the global economy. The resurgence in oil prices is posing a threat to overall inflation, with energy holding a 7% weighting in the U.S. Consumer Price Index (CPI) basket. Investors expect the Federal Reserve to keep rates steady, but rising oil prices could challenge this expectation.
September 19, 2023 | 3:19 pm
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The United States Oil Fund ETF (NYSE:USO) breached the $91 per barrel mark on Tuesday. Sustained oil prices above $100 per barrel could have major implications on the global economy and the ETF's performance.
The United States Oil Fund ETF (USO) tracks the price of oil. As oil prices have surged nearly 30% since June, this has likely positively impacted the ETF. If oil prices continue to rise and potentially surpass $100 per barrel, this could further boost the ETF's performance. However, it's important to note that sustained high oil prices could have broader implications on the global economy, which could in turn impact the ETF.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100