Oil prices declined for a second session on Thursday, after the Federal Reserve cut interest rates as expected and traders focused on concerns about the U.S. economy and excess supplies.
Brent crude futures fell 26 cents, or 0.38%, to $67.69 a barrel by 0656 GMT. U.S. West Texas Intermediate futures dropped 28 cents, or 0.44%, to $63.77.
The Fed cut its policy rate by a quarter of a percentage point on Wednesday and indicated it will steadily lower borrowing costs over the rest of the year, responding to signs of weakness in the jobs market.
Lower borrowing costs typically boost demand for oil and push prices higher.
But the latest move and the hint of two more cuts this year was already priced in, said Priyanka Sachdeva, a senior market analyst at Phillip Nova.
"What caught markets’ attention was not just the easing, but Powell’s downbeat message," she said, referring to Fed Chair Jerome Powell.
"He stressed weakening job markets and inflation that remains sticky, making the cut look more like risk-management than a demand booster."
The indication of more rate cuts coming from the Fed signals that policymakers assess risk to the economy from unemployment to be higher than from inflation, said Claudio Galimberti, chief economist and global director of market analysis at Rystad Energy, in a client note.
Source : Reuters