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Oil prices slipped on Wednesday, September 18, as the Federal Reserve's larger-than-expected rate cut intensified concerns over the health of the US economy, overshadowing a sharper-than-forecast decline in crude inventories. The market largely shrugged off the 1.6 million-barrel draw in US stockpiles, attributing the reduction to short-term weather disruptions rather than a meaningful shift in supply-demand dynamics.

Brent settled at $73.65/barrel, down 5 cents.

WTI slid by 28 cents, closing at $70.91/barrel.

The Fed's decision to slash interest rates by 0.5%— more aggressive than anticipated—stirred concerns about a slowing labor market. While rate cuts typically stimulate energy demand, the unease surrounding broader economic conditions tempered any optimism in the oil market.

Written by: Rochelle Nguyen