Stability of Oil Prices Following US Interest Rate Cut
Oil prices showed little change on Friday after a decline at settlement, amid concerns regarding fuel demand in the United States following the first interest rate cut by the Federal Reserve this year.
Brent crude futures dropped by one cent to $67.43 per barrel, while West Texas Intermediate crude futures fell by four cents to $63.53.
Both benchmark crudes are on track to record gains for the second consecutive week.
The US Federal Reserve lowered the interest rate by a quarter of a percentage point on Wednesday. The central bank indicated the possibility of further monetary easing in response to signs of weakness in the labor market.
Typically, lower borrowing costs boost oil demand and drive prices higher. However, a rise in distillate inventories in the US by nearly four million barrels, against market expectations of only a one million barrel increase, has heightened concerns regarding demand in the world’s largest oil consumer and put pressure on prices.
