The Federal Reserve cut its benchmark interest rate by 25 basis points on Wednesday and signaled that further reductions are likely.
Lower borrowing costs usually stimulate oil demand and drive prices higher. However, because the decision was widely anticipated, its impact on oil prices had likely faded even before the official announcement.
Meanwhile, Ukrainian forces struck two additional Russian refineries, but the attacks had little impact on international oil prices as Transneft’s statement earlier this week denied reports suggesting that the attacks on refineries could lead to a drop in production.
Meanwhile, they coincided with President Donald Trump’s remarks that he preferred cheap oil over imposing further sanctions on Russia.
The U.S. Department of Energy reported a larger-than-expected 4 million barrel build in the country’s distillate inventories, putting downward pressure on oil prices.
On the demand side, all major energy agencies, including the U.S. Energy Information Administration, have raised concerns about weakening demand, which has tempered expectations for a sharp short-term rise in prices. In addition, the refinery maintenance shutdown season is expected to further reduce demand.

Bitumen prices in most parts of Europe showed a slight upward trend, while in Asia they continued to decline.
In Rotterdam, export cargoes slipped by $2 to $403/t, while in the Baltic, Italy, and Spain they were assessed at $401/t, $378/t, and $381/t, respectively, each up by $1.
Demand in the Mediterranean gradually picked up, with markets experiencing a notable seasonal rebound. In the region, export bitumen edged $1 higher to $367/t.
Singapore’s bitumen export prices edged lower amid persistent regional weakness. Expectations of reduced production in October offered little support, as overall inventory levels remained high.
In Singapore, export cargoes dropped by $5 to $412/t. In South Korea and Thailand, prices also fell by $3, reaching $396/t and $415/t, respectively.
In North Africa, delivered cargoes were unchanged at $408/t, while in West Africa they gained $1 to $552/t. In contrast, East African import cargoes fell by $7 to $491/t.
Iran’s bulk prices also edged lower to $277/t, as export activity slowed amid weak demand and concerns over a possible return of UN sanctions.