Oil prices edged lower in Asian trading on Thursday, with a firmer dollar dulling the boost from the Federal Reserve’s quarter-point rate cut and keeping Brent and WTI adrift near the bottom of recent ranges. By 21:18 ET (01:18 GMT), Brent December futures were down 0.2% at $64.81 a barrel, while West Texas Intermediate slipped 0.3% to $60.31.

The immediate macro driver was the greenback. The dollar spiked after the Fed cut rates by 25 basis points but downplayed the likelihood of another move in December, a message that pulled forward hopes for easier policy earlier in the week and pushed real yields modestly higher. Because crude is priced in dollars, a stronger U.S. currency mechanically tightens global financial conditions for oil buyers, pressuring benchmarks. Some profit-taking in Asia pared the dollar’s overnight gains, but not enough to turn oil higher.

Event risk is layered on top of the currency impulse. Traders are positioned cautiously ahead of a highly watched meeting between U.S. President Donald Trump and China’s President Xi Jinping in South Korea, which could set the tone for trade relations into year-end. Both sides have signaled conciliatory intent, fuelling hopes for progress on tariffs and export controls. Still, after October’s flare-up in tensions and the volatility that followed, energy markets are reluctant to price a durable détente without concrete deliverables.

From a demand perspective, the Fed’s cut is typically supportive—lower borrowing costs can cushion activity and, by extension, oil consumption. Yet the central bank’s reminder that further easing is not assured tempered that tailwind. On the supply side, lingering concerns about a glut, coupled with uneven indicators of global growth, have kept sentiment fragile; crude remains lower for October and is on track for a third consecutive monthly decline as length has been pared back across the curve.

Near term, direction hinges on two threads: the post-meeting communiqué from Washington and Beijing, and the dollar’s path as markets digest the Fed’s guidance. Clear evidence of trade de-escalation alongside a softer dollar would offer breathing room for Brent to reclaim the mid-$65s. Absent that, the burden remains on supportive inventory data or unexpectedly firm macro prints to arrest the drift. As things stand, oil is captive to macro currents, with rallies likely to fade until policy clarity and demand signals improve.