Brent crude settled at $68.22, down 52 cents (−0.76%), while U.S. West Texas Intermediate (WTI) finished at $64.05, off 47 cents (−0.73%).
The U.S. Energy Information Administration reported a sharp draw in crude stocks last week, driven by strong exports and weaker imports. But distillate inventories rose, sparking concerns over diesel demand. “Markets are responding on diesel, which is the soft underbelly of the entire complex,” said Phil Flynn of Price Futures Group.
The Fed cut interest rates by 0.25 percentage points, signaling more easing through year-end to support growth. While expected, analysts noted that energy traders remain cautious about demand.
On the supply front, Kazakhstan resumed flows through the Baku-Tbilisi-Ceyhan pipeline after last month’s suspension, and Nigeria lifted an emergency rule in Rivers state, home to key export terminals. Meanwhile, Ukraine’s intensified drone attacks on Russian ports and refineries kept supply risks in focus, with Transneft warning producers of possible curtailments.