Oil prices held steady on Thursday after the U.S. Federal Reserve cut its benchmark interest rate as expected and signaled more reductions later this year. Brent crude slipped 0.12% to $67.87 a barrel, while U.S. West Texas Intermediate (WTI) fell 0.16% to $63.95.
The Fed lowered its policy rate by a quarter percentage point on Wednesday, highlighting concerns over a weakening labor market. Analysts suggest cheaper borrowing costs could stimulate economic activity, lifting oil demand. According to Rystad Energy’s chief economist Claudio Galimberti, Brent may see support from further Fed cuts despite bearish pressure from OPEC+ increasing supply.
On the supply side, U.S. Energy Information Administration (EIA) data showed crude inventories dropped sharply last week, with net imports at record lows and exports hitting a two-year high. However, distillate stocks rose by 4 million barrels—far exceeding the expected 1 million increase—raising concerns about demand in the world’s largest oil consumer.
Global oil demand averaged 104.4 million barrels per day through September 17, according to JP Morgan, marking a year-on-year rise of 0.52 million barrels. Year-to-date demand growth stands at 0.8 million barrels, nearly in line with the bank’s forecast of 0.83 million. The bank noted easing flight activity in the U.S. and China after the peak travel season, offset by growing demand in Europe, the Middle East, and Latin America.
Overall, while OPEC+ supply growth may pressure prices, the Fed’s accommodative policy stance and resilient global demand suggest underlying support for oil markets in the months ahead.


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