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Oil falls on demand concerns after Fed signals slower relieving ahead

Oil costs fell in early trading on Thursday after the U.S. Federal Reserve signalled that it would slow the rate of interest rate cuts in 2025, potentially impacting fuel need.

Brent futures fell 33 cents, or 0.45%, to $73.06 a. barrel by 0107 GMT. U.S. West Texas Intermediate crude. fell 36 cents, or 0.51%, to $70.22.

The falls reverse much of the gains from Wednesday, when. rates settled greater as U.S. unrefined stocks fell and the U.S. Federal Reserve cut interest rates by an anticipated 25 basis. points as anticipated. However those gains were topped after the. reserve bank later provided a more hawkish view on the outlook. for 2025, which continues to weigh on market belief.

During the December 17-18 policy meeting, main lenders. projected they would make simply two quarter-percentage-point rate. decreases in the coming year due to stubbornly high inflation,. half a point less than they had expected as of September.

Lower rates reduce obtaining costs, which can improve. economic growth and need for oil.

U.S. unrefined stocks and distillate stocks fell while. gasoline stocks increased in the week ending Dec. 13, the Energy. Details Administration stated on Wednesday.

Crude inventories fell by 934,000 barrels in the week to 421. million barrels, the EIA said, compared to experts'. expectations in a Reuters survey for a 1.6 million-barrel draw.

The U.S. Environmental Protection Agency approved. California's landmark plan to prohibit the sale of gasoline-only. lorries by 2035 and need a minimum of 80% of new automobiles to be. fully electrical by then. California's guidelines have actually been embraced by. 11 other states, including New York, Massachusetts and Oregon.

(source: Reuters)