Shafaq News/Oil prices were little changed on Thursday as lingering concerns over demandcapped the potential benefits of a larger-than-expected Federal Reserveinterest rate cut.
Brent crudefutures for November rose 8 cents to $73.73 a barrel by 0015 GMT, while WTIcrude futures for October declined 3 cents to $70.88 a barrel.
The U.S.central bank cut interest rates by half a percentage point on Wednesday.Interest rate cuts typically boost economic activity and energy demand, but themarket perceived it as a sign of a weaker labor market that could slow theeconomy.
That viewappeared to outweigh the boost that interest rate cuts usually bring toeconomic activity.
"Whilethe 50 basis point cut hints at harsh economic headwinds ahead, bearishinvestors were left unsatisfied after the Fed raised the medium-term outlookfor rates," ANZ analysts said in a note.
Weak demandfrom China's slowing economy also continued to weigh.
Refineryoutput in China slowed for a fifth month in August, statistics bureau datashowed over the weekend. China's industrial output growth also slowed to afive-month low last month, and retail sales and new home prices weakenedfurther.
Markets werealso keeping an eye on events in the Middle East after walkie-talkies used byLebanese armed group Hezbollah exploded on Wednesday following similarexplosions of pagers the previous day.
Securitysources said Israeli spy agency Mossad was responsible, but Israeli officialsdid not comment on the attacks.
Citianalysts say they expect a counter-seasonal oil market deficit of around 0.4million bpd to support Brent crude prices in the $70 to $75 a barrel rangeduring the next quarter, but that would be temporary.
"As2025 global oil balances deteriorate in most scenarios, we still anticipaterenewed price weakness in 2025 with Brent on a path to $60/barrel," Citisaid in a note on Thursday.
(Reuters)