Crude oil futures fall 1.6% in U.S. session as market eyes Fed rate statement

Crude oil futures fell 1.6% to $69.96 per barrel in US trading on 18 September. The market is concerned about the Federal Reserve's stance on interest rates, the decision on the magnitude of the rate cut and the reasons behind the current economic outlook.

Phil Flynn, an analyst at Price Futures Group, said that growing supply concerns could support oil prices despite their weakness ahead of expected production cuts. In his report, Flynn noted that the recent oil sell-off may be exaggerated and out of touch with fundamentals, and that tight supply will keep oil prices from falling too much further.

West Texas Intermediate crude has fallen 20 per cent since hitting a yearly high of $86.91 a barrel in April.