Oil prices eased on Thursday as traders remained focused on U.S. economic headwinds a day after the Federal Reserve’s first rate cut of the year, with demand concerns outweighing geopolitical supply risks.
Brent crude settled at $67.44, down 51 cents (−0.8%), while WTI closed at $63.57, off 48 cents (−0.8%).
The Fed lowered its policy rate by 25 basis points on Wednesday, pledging to gradually reduce borrowing costs through year-end. While rate cuts usually support oil demand, analysts noted the move reflected a slowing U.S. economy. Fresh data showed a softening labor market, weak housing activity, and higher-than-expected distillate stockpiles — all of which weighed on sentiment.
Crude inventories fell sharply last week as exports surged, but distillate stocks rose by 4 million barrels, far exceeding forecasts. “Diesel remains the soft underbelly of the complex,” said Phil Flynn of Price Futures Group.
Geopolitical risk remained in the background: Ukraine targeted Russian refining assets, and Trump renewed pressure on NATO allies to cut Russian crude imports. Still, traders judged oversupply and weak U.S. demand as the dominant drivers.