US Rate Cut Leaves Oil Market Unimpressed

19 Sep 2024 , 08:49 AM

Oil prices dipped in Asian trading on Thursday, following a larger-than-expected Federal Reserve interest rate cut that raised fears about the US economy.

Brent crude prices for November slid 34 cents, or 0.46%, to $73.31 a barrel, while WTI crude futures for October fell 42 cents, or 0.59%, to $70.49.

The Federal Reserve dropped interest rates by half a percentage point on Wednesday, implying that the labour market was stalling. That opinion looked to outweigh the benefit that interest rate reduction typically provide to economic growth.

China’s refinery output slowed for the sixth consecutive month in August, according to statistics bureau data released over the weekend.

China’s industrial output growth dropped to a five-month low last month, while retail sales and new home prices fell further.

Markets were monitoring events in the Middle East after walkie-talkies used by the Lebanese armed group Hezbollah burst on Wednesday, following similar pager explosions the day before.

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