Oil drops as Fed signals rate cuts may be limited
TOKYO: Oil prices fell more than $1 on Thursday, declining for the first time in six days, after the U.S. Federal Reserve dampened hopes for a string of rate cuts and Sino-U.S. trade talks ended without progress.
The drop came despite a bigger-than-expected decline in inventories in the U.S. and a drop in crude production among OPEC members, along with Libya cutting exports, typically bullish drivers for the market.
Brent crude, the international benchmark, fell $1.06, or 1.6 per cent, to $63.99 a barrel by 0037 GMT, while U.S. crude was down 93 cents, or 1.6 per cent, at $57.65 a barrel, having fallen more than $1 earlier.
