Oil Prices Trim Gains on US Inventories Decline

Oil prices lost a large part of their gains during Wednesday's trading after a decline in crude stocks in the United States, to achieve a limited rise after the Federal Reserve cut US interest rates as expected, but with an indication of a slowdown in the pace of interest rate cuts next year.

Brent crude futures rose 20 cents, or 0.27%, to $73.39 a barrel at the settlement, while the US crude futures rose 0.71% at the settlement to $70.58 a barrel.

Both crudes fell from gains of more than a dollar a barrel at their highest levels during Wednesday's trading.

According to data from the US Energy Information Administration issued on Wednesday, crude oil and distillate inventories in the United States fell, while gasoline inventories increased during the past week that ended on December 13.

The amount of products supplied, an indicator of demand, reached 20.8 million barrels per day, an increase of 662 thousand barrels per day from the previous week.Latest Oil Prices

WTI Crude $70.19 -0.39 -0.55%

Brent Crude $72.85 -0.54 -0.74%

Murban Crude $73.24 -0.35 -0.48%

Louisiana Light $73.34 -0.74 -1.00%

Bonny Light $78.62 -2.30 -2.84%

Mars US $74.33 -1.26 -1.67%

Gasoline $1.937 -0.006 -0.32%

Natural Gas $3.423 +0.049 +1.45%

Lower interest rates typically reduce borrowing costs, which could boost economic growth and demand for oil.

Meantime, the US Federal Reserve decided to cut interest rates for the third time in a row by 25 basis points to a range of 4.5-4.25% in line with expectations, during its last meeting in 2024.

The Federal Reserve voted in favor of cutting interest rates by a majority of 11 votes to one.