The Fed ‘s rate cut is good for fuel.
A Fed rate cut would increase liquidity, devalue the dollar and push up asset prices, so dollar – denominated commodities would benefit directly. If the Fed raises interest rates , it will reduce the dollar in the market and raise the dollar index . That’s bad news for fuel, which will lead to lower prices. Conversely, if the Fed lowers interest rates, it will increase the dollar in the market and lower the dollar index. This is good news for fuel, which will lead to higher prices.