ANKARA, Sept 21 — Oil prices declined more than one per cent on Thursday over demand concerns as the US Federal Reserve (US Fed) held its key interest rate steady and forecast fewer cuts next year, reported Anadolu.
International benchmark crude Brent traded at US$92.36 per barrel at 10.31am local time (0731 GMT), a 1.25 per cent loss from the closing price of US$93.53 a barrel in the previous trading session on Wednesday.
The American benchmark West Texas Intermediate (WTI) traded at the same time at US$88.50 per barrel, down 1.29 per cent from the previous session’s close of US$89.66 per barrel.
Both benchmarks recorded the steepest falls of the month, reaching 10-month highs on supply concerns after Saudi Arabia and Russia extended curbs until the end of the year.
On Wednesday, prices declined as investors profited from high price levels before the US Fed’s announcement, which aligned with market expectations.
It maintained its benchmark interest rate on Wednesday but hinted that another increase is likely this year due to persistently high inflation and a robust economy.
US Fed chair Jerome Powell said the central bank will move ‘carefully’ in determining the extent of monetary policy tightening based on future macroeconomic data.
Its decision overshadowed a decline in US crude oil stockpiles that suppressed investor demand concerns.
According to data released by the Energy Information Administration (EIA) on Wednesday (September 20), US commercial crude oil inventories fell by around 2.1 million barrels compared to the American Petroleum Institute’s expected drop of around 5.2 million barrels.
— Bernama
