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Oil lower in Asian trade after Fed stands pat

SINGAPORE — Oil prices were lower in Asian trade Thursday after the US central bank failed to announce any new measures to kickstart the country’s stuttering economy, analysts said.

New York’s main contract, light sweet crude for delivery in September, shed 15 cents to $88.76 a barrel in the afternoon and Brent North Sea crude for September delivery fell a cent to $105.95.

Oil prices were pressured “after the US Federal Reserve said the economy had lost some momentum but offered no new stimulus that could shore up growth and translate into higher fuel demand”, Phillip Futures said in a report.

The Fed’s decision to keep monetary policy unchanged on Wednesday was widely expected but disappointed some investors who had hoped for additional fresh measures.

Despite inching lower, crude markets were supported by “positive economic data out of China, and on some tightening of US oil fundamentals”, said Sanjeev Gupta, who heads the Asia-Pacific oil and gas practice at Ernst and Young.

Data showed Wednesday that crude stockpiles fell 6.5 million barrels in the week ending July 27, instead of the much smaller drop of 800,000 barrels expected by analysts polled by Dow Jones Newswires, indicating demand is holding up.

Meanwhile, China’s manufacturing activity picked up modestly to a three-month high in July as factory output rose, boosted by government measures to stimulate the economy, a survey by banking giant HSBC showed Wednesday.