Oil prices slow sell-off as expectations of Fed rate cut grow [Video]

A sharp sell-off in crude oil paused on Thursday after expectations of a rate cut by the Federal Reserve offset a bunch of weak economic data from the world’s two largest economies, the United States and China.

Brent crude futures were 3 cents up to $76.08 a barrel. U.S. West Texas Intermediate crude futures fell 5 cents to trade at $71.88 at 0036 GMT. Both contracts lost over $1, or more than 1%, in the previous session.

WTI touched its lowest since early February on Wednesday after revised U.S. employment statistics showed fewer jobs than previously reported and weak economic data from China, the world’s second-largest economy.

The revised jobs data offset support from a drop in U.S. oil inventories.

The overnight downturn in oil prices took a breather in early Thursday trade, however, as markets focused on the prospects for near term U.S. rate cuts.

The Federal Reserve appeared to be on track for an interest rate cut in September after a “vast majority” of …