Oil Prices Slip as U.S. Economic Concerns Overshadow Fed Rate Cut
By Jupitorworld | September 19, 2025
Description
Oil prices fell as worries over U.S. economic weakness outweighed the Federal Reserve’s first rate cut of 2025. Brent settled at $67.44, WTI at $63.57.
New York —
Global oil prices edged lower on Thursday, with traders focusing on signs of a slowing U.S. economy even after the Federal Reserve cut interest rates for the first time this year.
Brent crude futures slipped 51 cents, or 0.8%, to settle at $67.44, while U.S. West Texas Intermediate (WTI) crude lost 48 cents, or 0.8%, ending at $63.57.
Fed Rate Cut Fails to Lift Market
The Fed trimmed its policy rate by 0.25 percentage points on Wednesday and signaled further reductions were possible through 2025 in response to weaker labor and housing data.
“Clearly the economy is slowing down,” said Jorge Montepeque, managing director at Onyx Capital Group. “The Federal Reserve is trying to restore growth.”
Lower borrowing costs usually boost oil demand, but this time, concerns over sluggish U.S. fuel consumption and housing market weakness kept pressure on prices.
U.S. Stockpiles: Mixed Signals
Government data showed U.S. crude inventories fell sharply last week as imports dropped to record lows while exports surged to their highest level in nearly two years.
However, distillate stockpiles rose by 4 million barrels — well above market expectations — stoking fears of soft demand in the world’s largest oil consumer.
Global Factors at Play
Russia: Ukraine launched drone strikes against Russian refineries, intensifying disruption in Moscow’s energy sector. Russia’s finance ministry announced measures to shield its budget from oil price swings and sanctions.
Kuwait: Oil Minister Tariq Al-Roumi forecast stronger demand post-Fed cut, especially from Asia.
Qatar: QatarEnergy raised term prices for al-Shaheen crude to an eight-month high.
Germany: Parliament approved a record budget aimed at reviving the economy and boosting defense spending.
Middle East: Israel carried out fresh airstrikes on Hezbollah positions in southern Lebanon.
Outlook
Analysts suggest that while supply risks from Russia and the Middle East should support crude, demand worries in the U.S. remain the bigger weight. Traders are now watching upcoming economic indicators and OPEC guidance for the next move in prices.
FAQ
Q: Why did oil prices fall despite the Fed rate cut?
Because U.S. economic concerns — weak jobs and housing markets — outweighed the expected demand boost.
Q: What are current oil prices?
Brent closed at $67.44 per barrel, while WTI settled at $63.57.
Q: Which global events are affecting oil supply?
Ukraine’s strikes on Russian refineries, Middle East tensions, and OPEC members’ pricing policies.