LONDON – Oil prices edged lower on Friday as demand worries outweighed optimism that the U.S. Federal Reserve’s first interest rate cut of the year could boost consumption.
Brent crude futures fell 14 cents, or 0.2%, to $67.30 a barrel by 1051 GMT, while U.S. West Texas Intermediate (WTI) slipped 28 cents, or 0.4%, to $63.29 a barrel. Despite the dip, both benchmarks remain on track for a second consecutive weekly gain.
The Fed cut its policy rate by 25 basis points on Wednesday and signaled more cuts ahead in response to a weakening jobs market. Lower borrowing costs typically spur demand and push oil prices higher.
“The market has been caught between conflicting signals,” said Priyanka Sachdeva, analyst at Phillip Nova. While agencies like the EIA warn of softening demand, planned OPEC+ output hikes and rising U.S. inventories weigh further on sentiment.
U.S. distillate stockpiles surged by 4 million barrels, raising fresh demand concerns. Additionally, weak economic data — including a slowdown in job growth and a plunge in single-family homebuilding — heightened worries about consumption.
Analyst Tamas Varga of PVM Oil Associates noted that the U.S. recovery remains uneven, with deregulation aiding corporations while consumers face strain from tariffs, higher costs, and a weakening labor market.
Meanwhile, Russia’s finance ministry is moving to shield its budget from oil price swings and Western sanctions. In Europe, the European Commission plans to ban Russian LNG imports by Jan 1, 2027 — a year earlier than planned — as part of a new sanctions package against Moscow.
