Oil prices were little changed on Friday after settling lower in the previous session, the day after the U.S. Federal Reserve cut interest rates for the first time this year, due to worries about fuel demand in the United States.
Brent crude futures were down 1 cent at $67.43 a barrel at 0100 GMT, and U.S. West Texas Intermediate futures were down 4 cents at $63.53. Both benchmarks were on track to end higher for a second straight week.
The Fed cut its policy rate by a quarter of a percentage point on Wednesday and indicated more cuts would follow as it responded to signs of weakness in the jobs market.
Lower borrowing costs typically boost demand for oil and push prices higher.
However, a rise in U.S. distillate stockpiles by 4 million barrels, against market expectations of a gain of 1 million barrels, raised worries about demand in the world’s top oil consumer and pressured prices.
“Gains in the USD and U.S. long-end yields further undermined support for crude oil,” IG analyst Tony Sycamore said.
The dollar index rose 0.43 per cent to 97.37, strengthening 0.52 per cent to 0.793 against the Swiss franc and rising 0.67 per cent at 147.95 against the Japanese yen.
Economic data also added to concerns. Joblessness claims data released this week indicated the U.S. labour market has softened, with both demand for and supply of workers falling, while single-family home building plunged to a near 2-1/2-year low in August amid a glut of unsold new houses.
In Russia, the world’s second-biggest producer of crude in 2024 after the United States, the Finance Ministry announced a new measure to shield the state budget from oil price fluctuations and Western sanctions, easing some supply concerns.
“President Trump’s comment that he preferred low prices over sanctions on Russia also eased concerns over supply disruptions,” ANZ analyst Daniel Hynes said in a note on Friday.
