05:10 AM EST, 12/19/2024 (MT Newswires) -- Crude oil prices edged lower early on Thursday after the U.S. Federal Reserve signaled it will slow the pace of interest rate cuts in 2025.

U.S. central bankers issued projections pointing to two quarter-point interest rate cuts in 2025, citing inflation concerns. That is half a point less than they had anticipated in September.

The rate-cut projection overshadowed the Fed's 25-basis-point interest rate cut on Wednesday, which had been widely expected, and a drop in U.S. crude oil inventories.

Brent crude lost 0.2% to US$73.27 per barrel and West Texas Intermediate crude was down less than 0.1% to US$70.57/b at last look.

"The demand-supply balance going into 2025 continues to look unfavourable and predictions of more than 1.0 million [barrels per day] demand growth in 2025 look stretched in our opinion. Even if OPEC+ continues to withhold production, the market may still be in surplus," Reuters quoted DBS Bank's energy sector team lead Suvro Sarkar as saying.