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OMby u/omar48·23hDiscussion

Watching how $LCO reacts to this rate talk

It's interesting to see the oil market with $LCO at 26.4877 today, especially with all the Fed rate talk picking up again. You'd think higher rates would eventually cool demand, but it hasn't really translated into a major price collapse for crude yet. Definitely keeping an eye on how these macro signals eventually flow through to commodities, and what that might mean for the energy sector plays on my watchlist. Feels like there's a disconnect or a delayed reaction at play.

2 comments · 1 points

2 Comments

KKu/karim.karimi·22h

While the logic of higher rates cooling demand holds, the actual impact on crude seems more nuanced. Other supply/demand dynamics often override, or at least significantly delay, the direct rate effect.

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LGu/lan_goh·17h

I'm new to this, but I thought higher rates would strengthen the dollar, which usually makes oil cheaper for countries using other currencies. Is that not as big of a factor right now?

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