Oil prices fell on Thursday on continued concerns about global demand following the US Federal Reserve's (Fed) decision to cut interest rates, with geopolitical tensions having a limited impact on the market.
International benchmark Brent crude was trading at $61.72 per barrel at 9.45 a.m. local time (0645 GMT), down around 1.2% from the previous close of $62.45.
US benchmark West Texas Intermediate (WTI) also decreased by about 2.25% to $58.03, compared to $58.77 in the prior session.
The declines came after the Fed lowered its policy rate by 25 basis points on Wednesday to a range of 3.5%–3.75%, citing a slowdown in the US labor market.
Geopolitical developments also drew attention. US President Donald Trump confirmed on Wednesday that his administration seized an oil tanker off the coast of Venezuela as tensions with President Nicolas Maduro continue to escalate.
"We've just seized a tanker on the coast of Venezuela; large tanker, very large, largest one ever seized, actually. And other things are happening," Trump told reporters at the White House, alleging that it was taken "for a very good reason."
The move is all but certain to further ratchet up tensions with Caracas as Trump continues to demand Maduro step down from power, maintaining that all options, including military force, remain on the table amid a massive force buildup in the region.
The US has already carried out 22 known strikes on alleged "narco-terrorist" seaborne vessels, killing 87 people since the attacks began in the Caribbean Sea and Eastern Pacific Ocean in early September.
Meanwhile, the US Energy Information Administration (EIA) data highlighted weakening demand in the world's biggest consumer.
The agency reported a larger-than-expected decline in crude inventories, while increases in gasoline and distillate stocks pointed to a seasonal slowdown in product consumption, adding downward pressure on prices.
Experts say demand-driven risks are now dominant and may keep oil prices under pressure in the short term.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr
