NEW YORK, Sept 19 (V7N) – Oil prices fell on Thursday following profit-taking, a day after the U.S. Federal Reserve cut interest rates for the first time this year and signaled potential further reductions amid economic concerns.
 
Brent crude futures declined 51 cents, or 0.8%, to $67.44 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped 48 cents, or 0.8%, to $63.57 per barrel.
 
The Fed reduced its policy rate by a quarter percentage point on Wednesday and indicated a steady path of easing for the remainder of the year, responding to signs of a weakening labor market. Lower borrowing costs typically stimulate oil demand, supporting prices.
 
“The Fed acted because the economy is slowing. They are trying to restore growth,” said Jorge Montepeque, managing director at Onyx Capital Group. While new unemployment claims in the U.S. fell last week, the labor market remains soft, and housing starts plunged to a near 2½-year low in August, highlighting economic headwinds.
 
Market pressures were compounded by persistent oversupply and soft fuel demand in the U.S., the world’s largest oil consumer. U.S. crude stockpiles fell sharply as net imports reached a record low and exports rose to a near two-year high. However, distillate stockpiles unexpectedly increased by 4 million barrels, raising demand concerns and pressuring prices.
 
Globally, oil supply dynamics remain influenced by geopolitical and strategic factors. Russia introduced measures to shield its budget from oil price volatility, while Ukraine reported drone strikes on major Russian oil facilities. Exxon Mobil confirmed it has no plans to resume operations in Russia, keeping Russian barrels largely off international markets.
 
Kuwait’s oil minister, Tariq Al-Roumi, forecasted increased oil demand following the U.S. rate cut, particularly from Asian markets. QatarEnergy also raised term prices for al-Shaheen crude oil for November loading to an eight-month high.
 
Economic developments in Germany and tensions in the Middle East, including Israeli airstrikes in southern Lebanon, continue to influence global energy markets.
 
Reporting by Scott DiSavino in New York, Anna Hirtenstein in London, Katya Golubkova and Siyi Liu in Singapore; Editing by Louise Heavens, Nick Zieminski, Leslie Adler, and David Gregorio
 
END/WD/SMA/