Oil prices experienced a second consecutive day of decline on Thursday, September 18, as market participants grappled with the implications of the Federal Reserve’s recent interest rate cut and broader concerns about the U.S. economy. Brent crude futures fell by 30 cents, or 0.4%, to $67.65 a barrel, while U.S. West Texas Intermediate (WTI) futures dropped by 30 cents, or 0.5%, to $63.75. The Federal Reserve’s decision to reduce its policy rate by a quarter of a percentage point on Wednesday, coupled with indications of further rate cuts throughout the year, aimed to address emerging weaknesses in the U.S. job market. While lower borrowing costs typically stimulate oil demand and elevate prices, the market remained clouded by persistent oversupply and subdued fuel demand in the United States, the world’s largest oil consumer. Kuwait’s oil minister, Tariq Al-Roumi, expressed optimism about a potential surge in oil demand, particularly from Asian markets, following the rate cut. However, some analysts remained skeptical, citing the Fed’s move as a response to a slowing economy rather than a catalyst for immediate price recovery. Federal Reserve Chair Jerome Powell highlighted the growing risks to employment compared to inflation, emphasizing the need for careful assessment and management of inflation risks. Additionally, U.S. crude oil stockpiles saw a sharp decline last week, driven by a record low in net imports and a significant increase in exports. However, a larger-than-expected rise in distillate stockpiles raised concerns about demand in the U.S., further pressuring oil prices. The market’s uncertainty underscores the complex interplay between monetary policy, economic indicators, and global oil supply dynamics.