Oct 16, 2025 3:17 p.m.

Oil fell as US economic concerns overshadow FED rate cut

Oil prices eased on Thursday, weighed down by renewed concerns over the US economic outlook and policy signals from Washington, which overshadowed a Federal Reserve rate cut

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Oil prices eased on Thursday, weighed down by renewed concerns over the US economic outlook and policy signals from Washington, which overshadowed a Federal Reserve rate cut and ongoing risks to Russian supply.

Brent crude futures settled 51 cents lower, or 0.8%, at $67.44 a barrel.

West Texas Intermediate slipped 48 cents, or 0.8%, to $63.57.

The Fed cut interest rates by 25 basis points, its first reduction this year, and indicated further easing ahead. While lower borrowing costs would typically stimulate demand, traders viewed the move as evidence of weakening momentum in the world’s largest economy.

US data painted a mixed picture. Crude inventories fell sharply last week as exports climbed to a near two-year high, but distillate stocks rose by 4 million barrels, well above expectations, reviving concerns about industrial and transport fuel demand. At the same time, single-family housing construction dropped to its lowest level in more than two years, underscoring broader economic fragility.

Prices came under additional pressure as Washington signalled support for keeping energy costs low, a stance that tempered expectations of a lasting supply squeeze despite new sanctions and continued Ukrainian strikes on Russian oil infrastructure. The attacks have forced refining runs below 5 million barrels per day, the lowest since April 2022, according to industry estimates.

 

Written: Aiman Haikal