MTECHTIPS;-NYMEX crude weaker in Asia as U.S. data, Fed views seen downbeat

MTECHTIPS;-NYMEX crude weaker in Asia as U.S. data, Fed views seen downbeat

Oil prices eased in Asia on Thursday after data from the U.S. Department of Energy showed a weaker drop in stockpiles than expected and markets viewed remarks from the Fed as downbeat for demand prospects. On the New York Mercantile Exchange, WTI crude for July delivery dropped 1.10% to $47.48 a barrel. On Wednesday afternoon, the Federal Open Market (FOMC), as expected, left the target range of its benchmark Federal Funds Rate unchanged at a level between 0.25 and 0.50%. It marked the fourth consecutive meeting the FOMC held rates steady at their current level since their historic rate hike in December. The FOMC voted unanimously 10-0 to support the monetary policy action. Previously, Kansas City Fed president Esther George served as the lone dissenter at FOMC meetings in March and April. "The Committee currently expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market indicators will strengthen," the FOMC said in the statement. "Inflation is expected to remain low in the near term, in part because of earlier declines in energy prices, but to rise to 2 percent over the medium term as the transitory effects of past declines in energy and import prices dissipate and the labor market strengthens further." The new projections aren't set in stone, but they do indicate how the views of officials are changing. The Fed doesn't see rates going as high as it saw before, and it sees taking a longer time to get to the endpoint officials have in mind.

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