LONDON (Reuters) – Oil prices fell as investors mused that the U.S. Federal Reserve is likely to delay an interest rate cut until December, while U.S. crude and fuel inventories rose.
At 11.35am Brent futures lost 53 cents, or 0.63%, to 82.08 dollars a barrel. US West Texas Intermediate (WTI) crude futures lost 53 cents, or 0.68%, to $77.96. Both benchmarks gained nearly 1% over the week and nearly 1% in the previous session.
The Fed kept rates on hold yesterday and pushed back the start of policy easing to December.
The increase in financial costs tends to slow down economic growth and, consequently, limit the demand for oil.
On the supply side, U.S. crude inventories rose more than expected last week, largely due to a surge in imports. Fuel inventories also increased more than expected, data from the Energy Information Administration (EIA) showed yesterday.
Downward data from the International Energy Agency (IEA), which warn of an excess supply in the near future, are also weighing on prices.
Eyes are also on ongoing ceasefire talks in Gaza which, if resolved, would reduce fears of potential disruptions to oil supplies from the region.
In the latest attack on shipping, Houthi militants, allies of Iran, yesterday took responsibility for an attack with small boats and missiles that necessitated the rescue of a Greek-owned coal ship near the Yemeni port of Hodeidah, on the Red Sea.
(Translated by Laura Contemori, editing Stefano Bernabei)
