Oil prices rise modestly on Fed rate cut

Oil drilling rigs

Oil prices rose slightly on Thursday as a rate cut announcement from the Federal Reserve raised worries about the health of the US economy.

Brent crude futures for November delivery rose 0.12%, or $0.09, to $73.74 a barrel, at 8:26 Makkah time.

Similarly, the US West Texas Intermediate (WTI) crude for October delivery stabilized at $70.88 a barrel.

The Fed's decision to cut interest rates by 50 basis points yesterday raised doubts among investors about whether this decision was aimed at preventing a recession in the US economy, due to the excessive tightening of monetary policy.

Investor fears overshadowed the positive impact monetary easing was supposed to have in boosting economic activity. The Fed's action has become a warning about the potential weakening of oil demand from the perspective of market participants.