Oil prices eased on Thursday, retreating from the prior day’s seven-week highs as stronger U.S. economic data tempered expectations for aggressive rate cuts and supply concerns re-emerged.
Brent futures rose 11 cents, or 0.16%, to settle at $69.42 a barrel while U.S. West Texas Intermediate futures fell 1 cent, or 0.02%, to settle at $64.98.
Thursday’s pullback came after revised data showed U.S. GDP rose at a 3.8% annualized pace last quarter, stronger than previously thought, dampening expectations for swift Fed easing. Equities also logged back-to-back declines, contributing to a broader risk-off mood.
Supply fundamentals weighed further: Iraqi Kurdistan flows are expected to resume after a deal between Baghdad, Erbil, and oil firms, reviving oversupply concerns. Still, Russia’s announcement of a partial ban on diesel exports through year-end, alongside an extension of its gasoline export ban, lent some support following recent Ukrainian drone strikes on refineries.