Oil prices rise after Fed rate cut, but demand worries persist

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Crude futures inched higher Thursday as markets weighed the Federal Reserve’s rate cut against concerns over U.S. fuel demand. Brent (CO1:COM [https://seekingalpha.com/symbol/CO1:COM]) gained 0.4%, to $68.22 a barrel by 8:33 a.m. ET, while West Texas Intermediate (CL1:COM [https://seekingalpha.com/symbol/CL1:COM]) rose 0.5%, to $64.35.

The Fed lowered rates by a quarter point on Wednesday and signaled further easing this year, a move expected to support energy demand. Kuwait’s oil minister said Asian markets in particular could drive consumption higher, though some analysts cautioned the cut underscores a slowing U.S. economy.

Meanwhile, U.S. inventories painted a mixed picture. Government data showed crude stocks fell sharply as exports surged and imports plunged, but distillate inventories jumped by 4 million barrels, well above forecasts, raising fresh concerns about sluggish fuel use.

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