Oil prices hit a high of $69 yesterday (Wednesday October 29) as interest rates were cut in the US and China. The US Federal Reserve cut rates by 0.5% to 1% and the People’s Bank of China lowered rates for the third time in six weeks.
Investors are also anticipating cuts from the Bank of Japan, the Bank of England and the European Central Bank.
Michael Davies, an analyst at derivatives broker Sucden in London, told Futures and Options Intelligence that the interest rate cuts were “boosting sentiment and expectations” about the economy, but that “a lot...