Oil drops below $65 on Fed outlook, ample supply
Oil dropped below $65 a barrel on Thursday, declining for the first time in six days, after the U.S. Federal Reserve dampened hopes for a string of interest rate cuts and as rising U.S. output helped keep the market well supplied.
The Federal Reserve reduced rates on Wednesday, but against expectations the head of the U.S. central bank said the move might not be the start of a lengthy series of cuts to shore up the economy against global economic weakness.
Brent crude LCOc1, the international benchmark, fell 69 cents to $64.36 a barrel by 1031 GMT, having dropped more than $1 earlier in the session. U.S. West Texas Intermediate (WTI) CLc1 crude was down 78 cents at $57.80.
“A relatively upbeat mood in risky assets took a spectacular U-turn after last night’s Fed decision,” Tamas Varga of oil broker PVM said. “The dollar started to strengthen and equities and oil went into a kind of meltdown mode.”
1st August 2019