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Oil eases as Fed caution, stock build outweigh OPEC+ news

February 27, 2024

Oil prices pulled back in Asia on Wednesday as the prospect of a delay in the U.S. rate-cutting cycle and a rise in U.S. crude stocks offset a boost on Tuesday from news OPEC+ might extend its output cuts.

Brent crude futures fell 30 cents, or 0.36%, to $83.35 a barrel by 0302 GMT, while U.S. West Texas Intermediate futures (WTI) dropped 28 cents to $78.59 a barrel.

On Tuesday, Federal Reserve Governor Michelle Bowman signalled she is in no rush to cut U.S. interest rates, particularly given upside risks to inflation that could stall progress on controlling price pressures or even lead to their resurgence.