BEIJING, Sept 19 Reuters Oil prices rose on Thursday after a large interest rate cut from the U.S. Federal Reserve, but concerns over global demand lingered and capped gains.
Brent crude futures for November were up 36 cents, or 0.5, to 74.01 a barrel at 0618 GMT, while WTI crude futures for October were up 34 cents, or 0.3, to 71.15 a barrel. The benchmarks recovered after falling in early Asian trade.
The U.S. central bank cut interest rates by half a percentage point on Wednesday. Interest rate cuts typically boost economic activity and energy demand, but the market also saw it as a sign of a weaker U.S. labor market that could slow the economy.
While the 50 basis point cut hints at harsh economic headwinds ahead, bearish investors were left unsatisfied after the Fed raised the mediumterm outlook for rates, ANZ analysts said in a note.
Weak demand from China39;s slowing economy also continued to weigh.
Refinery output in China slowed for a fifth month in August, statistics bureau data showed over the weekend. China39;s industrial output growth also slowed to a fivemonth low last month, and retail sales and new home prices weakened further.
Markets were also keeping an eye on events in the Middle East after walkietalkies used by Lebanese armed group Hezbollah exploded on Wednesday following similar explosions of pagers the previous day.
Security sources said Israeli spy agency Mossad was responsible, but Israeli officials did not comment on the attacks.
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