WTI edges lower below $63.50 on US economic slowdown fears

• WTI price trades in negative territory near $63.20 in Friday's early Asian session.
• Concerns about a slowdown in the US economy weigh on the WTI price.
• The Fed cut the interest rates and signaled further reductions this year. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $63.20 during the early Asian trading hours on Friday. The WTI drifts lower amid concerns over the health of the US economy. Nonetheless, a large draw in the US crude inventories and an interest rate cut by the Federal Reserve (Fed) might cap the downside for the WTI. 

Persistent oversupply risks and soft fuel demand in the US, the world's biggest oil consumer, undermine the black gold. Data from the Energy Information Administration (EIA) showed on Wednesday that US crude oil stockpiles fell sharply last week as net imports dropped to a record low while exports jumped to a near two-year high. 

However, a rise in distillate stockpiles, which increased by 4 million barrels versus predictions of a 1 million barrel increase, raised worries about demand in the world's top oil consumer and dragged the WTI price lower. 

The Fed cut the Federal Funds Rate by 25 basis points (bps) at the end of a two-day monetary policy meeting on Wednesday, lowering borrowing costs to the 4.00% to 4.25% range. The US central bank penciled in two more reductions this year. Lower interest rates generally support oil demand, and the Fed's guidance suggests it now views risks from rising unemployment as outweighing those from persistent inflation.