Oil rises at settlement as market outlook assessed

Oil drilling rigs

Oil prices rose at the close of trading on Sept. 23 as investor concerns about a global supply glut eased and the markets assessed outlook for US monetary policy.

Brent crude rose 1.6%, or $1.06, to close at $67.63 a barrel. WTI crude jumped 1.8%, or $1.13, to $63.41 a barrel.

This came after the failure to reach an agreement on resuming crude exports from the Kurdistan Region of Iraq due to debt repayment guarantees that have hindered the agreement between Baghdad, the regional government, and oil companies.

In contrast, the Organization for Economic Co-operation and Development (OECD) forecast, in a report released today, that global economic growth will gradually slow to 3.2% in 2025 from 3.3% in 2024, due to higher tariffs and uncertainty in investment and trade policies.

Regarding the outlook for US monetary policy, Federal Reserve Chairman Jerome Powell warned that the bank faces dual risks amid persistent inflation and deteriorating labor market conditions. However, his comments did not dissuade markets from anticipating two additional interest rate cuts this year, in October and December.