Oil Extends Losses as Weak Demand Signs Offset Fed's Rate Cut
Oil slipped for a second session as signs of weak US demand offset a steep interest rate cut from the Federal Reserve and escalating tensions in the Middle East.
West Texas Intermediate declined toward $70 a barrel after losing 0.4% on Wednesday, while Brent closed below $74. US gasoline demand dropped further below 9 million barrels and jet fuel consumption ebbed for the third straight week, according to Energy Information Administration figures.
Oil has trended lower since early July on concerns about China's economic slowdown and plentiful global supply. The Fed reduced its benchmark interest rate by a half percentage point on Wednesday, but Chair Jerome Powell said no one should see this as a "new pace."
In the Middle East, Israel's Defense Minister Yoav Gallant declared what he called a "new phase" in the war with regional Islamist groups and said troops would be diverted to the Lebanese border.
WTI for October delivery fell 1% to $70.16 a barrel at 7:40 a.m. in Singapore.
Brent for November settlement closed little changed at $73.65 a barrel on Wednesday.
Source : Bloomberg
