TOKYO, Sept 18 Reuters Oil prices fell on Wednesday after two sessions of gains, as weak macroeconomic data weighed on demand, offsetting the possible disruption of violence in the Middle East and the potentially bullish impact of an expected U.S. rates cut.
Brent crude futures for November were down 49 cents, or 0.7, at 73.21 a barrel, as of 0643 GMT. U.S. crude futures for October slid 50 cents, or 0.7, to 70.69 a barrel.
Weak macroeconomic data are deepening oil demand concerns. Money managers have turned net negative for the first time since 2011. End of the peak summer demand is also weighing on the market sentiment, analysts at ANZ said in a note.
Prices found some support from the risk increased violence in the oilproducing Middle East could disrupt supply after Israel allegedly attacked militant group Hezbollah with explosiveladen pagers in Lebanon.
Investors are focusing on Fed39;s likely rate cuts, which could revitalise U.S. fuel demand and weaken the dollar, said Mitsuru Muraishi, an analyst at Fujitomi Securities.
Traders kept bets that the Fed will start an anticipated series of interest rate reduction with a halfpercentagepoint move downward on Wednesday, an expectation that may put pressure on central bankers to deliver that.
Hezbollah promised to retaliate against Israel after the pagers detonated across Lebanon on Tuesday, killing at least eight people and wounding nearly 3,000 others, including fighters and Iran39;s envoy to Beirut.
The…