Oil prices fell on Friday as concerns over slowing demand in the US and a looming global supply glut overshadowed the Federal Reserve’s latest rate cut.
Brent crude traded at $66.87 a barrel at 9.42 a.m. local time (0642 GMT), down 0.36% from the previous close of $67.11.
US benchmark West Texas Intermediate (WTI) decreased by 0.46% to $63.02 from $63.31 in the prior session.
The Fed lowered its policy rate by 25 basis points on Wednesday, signaling more cuts ahead.
Fed Chair Jerome Powell called it a “risk-management cut” to shield the economy from labor market weakness.
Normally lower borrowing costs support oil demand, but traders remained focused on weak economic signals and lackluster consumption forecasts.
- Oversupply pressures mount
Lower borrowing costs typically boost demand for oil and push prices higher. However, broader concerns about economic weakness, along with weak demand forecasts, limit expectations for a near-term rebound, while planned OPEC+ output hikes and rising US fuel inventories are adding to oversupply concerns.
Meanwhile, Australia announced new measures Thursday to curb Russia's oil revenues, including lowering the price cap on Russian oil and sanctioning additional "shadow fleet" vessels, easing some supply concerns and partially offsetting downward pressure on prices.
Moreover, US President Donald Trump said in an interview with Fox News on Thursday that Europe could end the Russia-Ukraine war by imposing sanctions or tariffs on China and urged a rapid halt to Russian oil imports, actions he argues would weaken the Kremlin's war effort. Such moves could tighten global oil supply.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr