|
Brent crude futures was down 43 cents, or 0.5%, to $82.17 a
barrel by 0902 GMT. West Texas Intermediate (WTI) U.S. crude
futures fell 46 cents, or 0.6%, to $78.04. Both benchmarks had
gained nearly 1% in the previous session.
The Fed held rates steady on Wednesday and pushed out the start
of policy easing to perhaps as late as December.
"In the Fed's view this is the price that needs to be paid to
achieve a soft landing and avoid recession beyond doubt," PVM
Oil analyst Tamas Varga said.
Higher borrowing costs tend to dampen economic growth, and can
by extension, limit oil demand.
Fed Chair Jerome Powell said in a press conference after the
U.S. central bank's two-day policy meeting that inflation had
fallen without a major blow to the economy, adding that there
was no reason to think that cannot go on.
On the supply side, U.S. crude stockpiles rose more than
expected last week, driven largely by a jump in imports, while
fuel inventories also increased more than anticipated, data from
the Energy Information Administration showed on Wednesday.
Also weighing on prices was a bearish report by the
International Energy Agency, which warned of excess supply in
the near future.
Traders are also watching ongoing talks for a ceasefire in Gaza,
which, if resolved, would reduce fears of potential oil supply
disruptions from the region.
In the latest attack on shipping, Iran-allied Houthi militants
on Wednesday took responsibility for small craft and missile
attacks that left a Greek-owned coal carrier in need of rescue
near Yemen's Red Sea port of Hodeidah.
The militant group has attacked international shipping in the
Red Sea region since November in solidarity with the
Palestinians in the war between Israel and Hamas.
U.S. Secretary of State Antony Blinken said Hamas had proposed
numerous changes to a U.S.-backed proposal for a ceasefire,
adding that mediators were determined to close gaps in the
negotiations.
(Additional reporting by Sudarshan Varadhan in Singapore;
editing by Jason Neely)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
