Oil Prices Slip for Second Day on US Economic Concerns and Oversupply

Oil prices fell for a second straight session on Thursday. The drop came after the U.S. Federal Reserve cut interest rates as expected, while traders turned their focus to concerns over the U.S. economy and ongoing oversupply in the market.

Crude Prices Edge Lower

Brent crude futures slipped 13 cents, or 0.19%, to $67.82 a barrel by 04:17 GMT. U.S. West Texas Intermediate (WTI) futures declined 18 cents, or 0.28%, to $63.87 per barrel.

Fed Cut Already Priced In

The Federal Reserve lowered its benchmark rate by 25 basis points on Wednesday. Policymakers also signaled more rate cuts later this year, citing a weakening labor market.

Normally, lower borrowing costs support energy demand and oil prices. But analysts noted that the move was already priced in. Phillip Nova’s senior market analyst Priyanka Sachdeva said Powell’s cautious comments weighed on sentiment.

She explained that Powell stressed risks from slowing job growth and persistent inflation, making the rate cut appear more like risk management than a demand booster.

Market Still Weighed by Oversupply

Claudio Galimberti of Rystad Energy said the Fed’s signals showed policymakers viewed unemployment risks as greater than inflation risks.

At the same time, concerns about excess supply and weak fuel demand in the U.S. continued to pressure crude.

EIA data showed U.S. crude stockpiles fell sharply last week, with imports at record lows and exports at a two-year high. But distillate inventories surged by 4 million barrels, well above expectations of a 1-million-barrel increase, raising fresh concerns about demand.