Oil Falls, Market Weighs US Demand & Supply Outlook
Oil prices weakened on Friday due to concerns about US demand, although they remained on track for weekly gains thanks to the Fed's interest rate cut, which could boost consumption. At 08:50 GMT, Brent's November contract fell to $66.88/barrel, while WTI weakened to $62.61/barrel.
Russia-Ukraine tensions remain a drag, posing a risk of disrupting supply. However, US President Donald Trump pushed oil prices lower to pressure Moscow to end the war, while urging countries to stop buying fuel from the OPEC+ member—a sentiment that has held back the rally.
From a macro perspective, the oil market benefited from the Fed's interest rate cut and signals of further easing, potentially supporting demand going forward. However, US data showed distillate stockpiles rose sharply, indicating slowing demand as the summer driving season draws to a close. A weakening US job market also maintained caution.
On the supply side, expectations of additional supply increased after Kazakhstan resumed oil shipments via the Baku-Tbilisi-Ceyhan pipeline in early September following an August contamination disruption. From Africa, Nigeria lifted its state of emergency in Rivers State—a major export hub—which could reduce the risk of supply disruptions due to local tensions.(ads)
Key points:
Brent $66.83 (-0.8%), WTI $62.63 (1%); still likely to rise weekly.
Fed cuts support demand, but US distillate stocks rise and jobs data weakens.
Russia-Ukraine tensions versus Trump's push to lower prices are a tug-of-war for sentiment.
Supply: Kazakhstan restores BTC flows; Nigeria lifts emergency in Rivers State.
Source: Newsmaker.id
