Oil prices held steady on Thursday as traders weighed the U.S. Federal Reserve’s latest interest rate cut against growing concerns about the U.S. economy.
Brent crude futures rose 23 cents, or 0.3%, to $68.18 a barrel by 10:50 a.m. EDT (1450 GMT). U.S. West Texas Intermediate (WTI) crude also climbed 23 cents, or 0.4%, to $64.28.
The Federal Reserve reduced its policy rate by a quarter of a percentage point on Wednesday and signaled further cuts this year. The move came in response to signs of weakness in the U.S. labor market. Lower borrowing costs generally support higher oil demand and lift prices.
Kuwait’s oil minister, Tariq Al-Roumi, said he expects demand to rise following the U.S. rate cut, especially from Asia. Kuwait and Qatar, both members of OPEC, are closely monitoring global energy trends. QatarEnergy raised the term price for al-Shaheen crude for November loading to its highest level in eight months.
Not all analysts were optimistic. Jorge Montepeque of Onyx Capital Group argued that the Fed acted because the U.S. economy is slowing, and oil markets remain pressured by soft demand.
Recent U.S. data shows mixed signals. Weekly jobless claims fell, but the labor market continues to weaken. Homebuilding plunged to its lowest level in over two years, highlighting ongoing housing market struggles.
Meanwhile, U.S. crude stockpiles dropped sharply last week as exports surged to near two-year highs. However, a bigger-than-expected rise in distillate inventories raised new worries about demand.
In Russia, the Finance Ministry introduced new measures to protect its budget from oil price volatility and Western sanctions. At the same time, Ukraine reported drone strikes on a Russian oil refinery and petrochemical facility, intensifying pressure on Moscow’s energy sector. Exxon Mobil CEO Darren Woods confirmed that the company has no plans to return to Russian operations.
Elsewhere, Germany passed its first annual budget since loosening fiscal rules, approving record investments aimed at reviving Europe’s largest economy. The plan also commits to increased defense spending.
In the Middle East, Israel announced plans to strike Hezbollah infrastructure in southern Lebanon in response to renewed militant activity.
