Oil prices fell in early trade on Thursday as investors digested news that the U.S. Federal Reserve has opted against cutting interest rates in the near future, while ample U.S. crude and fuel stocks further weighed on the market.
Brent crude futures lost 14 cents, or 0.17%, to $82.46 a barrel at 0039 GMT, and U.S. West Texas Intermediate (WTI) crude futures fell 16 cents, or 0.2%, to hit $78.34. Both benchmarks had gained about 0.8% in the previous session.
The Federal Reserve held interest rates steady on Wednesday and pushed out the start of rate cuts to perhaps as late as December. Higher borrowing costs tend to dampen economic growth, and could, by extension, limit oil demand.
Fed Chair Jerome Powell noted in a press conference after the end of a two-day policy meeting that inflation had fallen without a major blow to the economy, and he said there was no reason to think that can’t go on.
Traders are also watching ongoing talks for a ceasefire in Gaza, which, if resolved, would reduce fears of potential supply disruptions from the oil producing region.
