MUSCAT : Brent crude futures fell by 42 cents, or 0.65%, to settle at $64.50 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped 38 cents, or 0.63%, to $60.10. The decline comes as investors assessed the potential impact of a trade truce between the world’s two largest economies after U.S. President Donald Trump reduced tariffs on China following a meeting with Chinese President Xi Jinping in the Republic of Korea.
Meanwhile, the U.S. Federal Reserve’s decision to cut interest rates on Wednesday added another layer of complexity. The Fed signaled that this might be the final rate cut for the year, citing limited data availability due to the ongoing government shutdown.
Despite Thursday’s decline, oil prices had gained ground in the previous session, buoyed by a larger-than-expected drop in U.S. crude and fuel inventories, suggesting tighter supply conditions.
Brent and WTI crude prices declined amid market caution following a U.S.–China trade truce and a Federal Reserve rate cut. The trade agreement and the Fed's interest rate decision introduced uncertainty, overshadowing earlier gains from reduced U.S. crude inventories, which had suggested tighter supply conditions.