Ana sayfa » Oil falls in early trading as U.S. rate cut postponed, ample U.S. crude stockpiles

Oil falls in early trading as U.S. rate cut postponed, ample U.S. crude stockpiles

The Fed kept interest rates steady on Wednesday, likely delaying easing until December

by BUNKERIST

Oil prices fell in early trading on Thursday, with investors trying to digest the U.S. central bank’s decision to delay a rate cut until December, while ample U.S. crude and fuel stockpiles weighed on the market.

Brent crude futures were down 23 cents, or 0.3%, at $82.37 a barrel by 0415 GMT, while WTI crude futures were down 20 cents, or 0.3%, at $78.30. Both indexes had gained about 0.8% in the previous session.

The Fed kept interest rates steady on Wednesday, likely delaying the start of policy easing until December.

Lower borrowing costs tend to boost economic growth, which in turn increases oil demand.

The Fed said after the end of the U.S. central bank’s two-day policy meeting that inflation had eased without dealing a major blow to the economy and that there was no reason to think it could not continue.

On the supply side, according to the data released by Energy Information Administration (EIA) on Wednesday, U.S. crude inventories rose more than expected last week, largely due to a surge in imports, while fuel stocks also rose more than expected.

Also weighing on prices was a bearish report from the International Energy Agency (IEA) that warned of oversupply shortly.

That contrasts sharply with a bullish report from OPEC+ earlier this week. The oil group maintained its forecast for stronger demand.

Iran-allied Houthi militants have been attacking international shipping vessels in the Red Sea region since November in a show of solidarity with the Palestinians in the war between Israel and Hamas.

Market players are also monitoring ongoing talks for a ceasefire in Gaza, which, if resolved, would ease fears of possible supply disruptions from the oil-producing region.

Late Wednesday, the Palestinian militant group Hamas issued a statement stressing its “positivity” in the ceasefire negotiations.

U.S. Secretary of State Antony Blinken said Hamas had proposed numerous changes to a U.S.-backed ceasefire proposal and that mediators were determined to close the gaps.