New York oil prices fall on Fed 'rate pace control theory' shock

Oil prices in New York have fallen on fears that the worsening global economy could reduce demand for crude oil next year.

On the New York Mercantile Exchange, West Texas Intermediate for January delivery closed at $69.91 a barrel, down $0.67 and 0.95% from the previous session.

Brent crude oil for February delivery, which is subject to international market comparisons, closed at $72.88 a barrel, down $0.51 and 0.69% from the previous session.

The previous day, the U.S. Federal Open Market Committee cut its benchmark interest rate by another 0.25%p, but oil prices came under downward pressure in the aftermath of a strong indication that the pace of rate cuts would slow next year.

Normally, the crude oil market sees a fall in interest rates as consumers' disposable income will increase and demand for crude oil will increase, raising concerns that slowing the rate cut could weaken demand for crude oil.