Brent crude futures shed 23 cents, or 0.3%, to $82.37 a barrel and U.S. WTI crude futures dropped 20 cents, or 0.3%, to $78.30
Oil prices dropped in early trade on Thursday, as investors digested that the U.S. Federal Reserve had pushed back a likely interest rate cut to December, while ample U.S. crude and fuel stocks also weighed on the market.
Brent crude futures shed 23 cents, or 0.3%, to $82.37 a barrel, as of 0415 GMT, and U.S. WTI crude futures dropped 20 cents, or 0.3%, to $78.30. Both benchmarks had added nearly 0.8% in the earlier session.
The Federal Reserve held rates steady on Wednesday and pushed out the start of policy easing to probably as late as December.
Higher borrowing costs tend to dampen economic growth, and can by extension, limit oil demand.
Fed Chair Jerome Powell said in a press conference after the U.S. central bank’s two-day policy meeting ended that inflation had dropped without a major blow to the economy, adding that there was no reason to think that cannot go on.
On the supply side, U.S. crude stockpiles increased more than expected last week, driven largely by a surge in imports, while fuel inventories also rose more than expected, data from the Energy Information Administration (EIA) showed on Wednesday.
Also weighing on prices was a bearish report by the International Energy Agency (IEA), which warned of excess supply in the near future.
This is in stark contrast to the bullish report from OPEC+ earlier this week. The oil group maintained its forecasts for strengthening demand, according to analysts at ANZ Research.
Traders are also watching ongoing talks for a ceasefire in the Middle East, which, if resolved, would reduce concerns of potential supply disruptions from the oil producing region.
