Oil prices fell for the second consecutive session during Asian trade on Thursday as market participants weighed the Federal Reserve’s decision to cut interest rates against persistent concerns over United States fuel demand and oversupply.
By 3 pm AEST (5 am GMT), Brent crude futures declined 20 cents, or 0.3%, to US$67.75 per barrel, while U.S. West Texas Intermediate (WTI) futures shed 24 cents, or 0.4%, to $63.81.
Both benchmarks declined around 0.8% in the previous session.
The U.S. Federal Reserve lowered its benchmark rate by a quarter percentage point on Wednesday and signalled further reductions through the remainder of the year, citing weakness in the labour market.
While cheaper borrowing costs generally stimulate energy consumption and support oil demand, the rate move failed to lift prices amid broader economic concerns.
Meanwhile, data from the Energy Information Administration (EIA) was mixed, with U.S. crude stockpiles dropping 9.29 million barrels last week, far greater than an expected 1.5 million barrel draw, as imports fell to record lows and exports surged to a near two-year high.
However, distillate inventories rose by 4 million barrels, exceeding expectations of a 1.1 million-barrel build and sparking renewed concerns over weak consumption.
