Oil prices closed slightly lower Wednesday, snapping a two-day winning streak even after the Federal Reserve cut interest rates for the first time in years.
The central bank slashed rates by a half point, a bigger move than many had expected. Though prices clawed back losses from earlier in the session, the response in the oil market was subdued.
West Texas Intermediate October contract $70.91 per barrel, down 28 cents, or 0.39%. Year to date, U.S. crude oil has fallen about 1%.
Brent November contract $73.65 per barrel, down 5 cents, or 0.07%. Year to date, the global benchmark has declined about 4%.
The oil market has been rattled this month by worries about a growing imbalance between supply and demand. U.S. crude and global benchmark Brent have fallen about 13% in the third quarter.
Consumption in China is slowing as electric vehicle sales surge in the world's largest crude importer. At the same time, OPEC+ is expected to increase production in December as output in the U.S., Canada, Brazil and Guyana remains strong.
U.S. commercial crude stockpiles fell by 1.6 million barrels for the week ended Sept. 13, according to the Energy Information Administration. Meanwhile, gasoline inventories rose by 100,000 barrels, according to the data.
Source : CNBC
