Oil up on Thursday

Oil prices rose on Thursday following a significant interest rate cut by the US Federal Reserve, though concerns about global demand limited gains. Brent crude for November increased by 0.5 per cent to $74.01 a barrel, while WTI for October rose by 0.3 per cent to $71.15 a barrel.

The Fed’s half-percentage point rate cut, intended to stimulate economic activity, raised concerns about a weaker US labour market.

ANZ analysts noted that the cut points to potential economic challenges. Additionally, China’s slowing economy and reduced refinery output continued to weigh on demand. Citi analysts expect oil prices to remain within the $70 to $75 range in the short term, predicting a decline to $60 per barrel in 2025.

Attribution: Reuters

Subediting: M. S. Salama