Oil prices plummet, gloomy economic outlook adds to oversupply concerns

Oil prices closed lower as central banks in the US and Europe expressed caution about further monetary policy easing, raising concerns about weakened economic activity and a potential decline in oil demand next year. Brent crude oil prices for the February 2025 delivery contract decreased by 0.7% to $72.88 per barrel, while West Texas Intermediate (WTI) crude oil prices for the January 2025 delivery contract fell by 1% to $69.91 per barrel. The Federal Reserve, as anticipated, reduced interest rates by a quarter percentage point. However, Chairman Jerome Powell's remarks regarding persistent inflation led to a degree of caution from the central bank with respect to the possibility of further rate cuts in the future. The US dollar also strengthened, making oil more expensive for buyers using other currencies. Meanwhile, the Bank of England (BoE) opted to maintain its interest rates in the UK. These developments contributed to a market adjustment, leading to a decline in oil prices.

https://internasional.kontan.co.id/news/harga-minyak-anjlok-prospek-ekonomi-yang-suram-tambah-kekhawatiran-kelebihan-pasokan

Budget crisis, US government faces shutdown threat

The US government is facing a critical situation, with funds set to run out within a day.Tensions are rising as Congress struggles to agree on a short-term funding plan.The latest attempt by Republicans to avert a government shutdown failed to gain approval in the House of Representatives, as it did not meet the required two-thirds majority vote.The bill faced opposition from both Democrats and 38 Republicans, leading to its failure. President-elect Donald Trump rejected the bipartisan deal proposed by House Speaker Mike Johnson and Democrats, with the support of tech billionaire Elon Musk, who has influence in the Republican political sphere.Musk criticized the draft budget through his social media platforms, increasing pressure on House Republicans to withdraw their support.Trump instead backed an alternative bill that tied government funding to a two-year suspension of the federal debt limit, but this proposal was heavily criticized by Democrats.

https://internasional.kontan.co.id/news/krisis-anggaran-pemerintah-as-menghadapi-ancaman-shutdown