Oil prices fell in Asian trading on Thursday after a larger-than-expected Federal Reserve interest rate cut sparked concerns about the U.S. economy.
Brent crude futures for November fell 34 cents, or 0.46%, to $73.31 a barrel by 0015 GMT, while WTI crude futures for October declined to $70.49 a barrel, down 42 cents or 0.59%.
The U.S. central bank cut interest rates by half a percentage point on Wednesday, suggesting the Fed saw a slowing job market. That view appeared to outweigh the boost that interest rate cuts usually bring to economic activity.
“While the 50 basis point cut hints at harsh economic headwinds ahead, bearish investors were left unsatisfied after the Fed raised the medium-term outlook for rates,” ANZ analysts said in a note.
Weak demand from China’s slowing economy also continued to weigh. “Ongoing demand concerns from China overshadowed the Fed’s decision,” IG market analyst Tony Sycamore said. Refinery output in China slowed for a fifth month in August, statistics bureau data showed over the weekend.
