Fri. Sep 20th, 2024

NNA – Oil prices, which eased on Friday, were on track to end higher for a second straight week following a large cut in U.S. interest rates and declining global stockpiles.nbsp;

Brent futures, which were trading 26 cents or 0.4% lower at $73.62 a barrel at 0527 GMT on Friday, gained 4.3% this week. U.S. WTI crude futures, which were down 15 cents, or 0.2% at $71.80 a barrel, registered weekly gains of 4.8%.nbsp;

The benchmarks have been recovering after they fell to near three year-lows on Sept. 10, and have registered gains in five of the seven sessions since then.nbsp;

Prices pared some gains on Friday, after rising more than 1% on Thursday following the U.S. central bank#39;s decision to cut interest rates by half a percentage point on Wednesday. Interest rate cuts typically boost economic activity and energy demand, but some also it as a sign of a weak U.S. labour market.

quot;Prices had been under pressure in recent months amid concerns demand would weaken, as tight monetary policies stifled economic activity,quot; analysts at ANZ Research said in a note.

quot;Easing monetary policy helped reinforce expectations that the US economy will avoid a downturn,quot; ANZ said.

Also supporting prices were a decline innbsp;U.S. crudenbsp;inventories, which fell to a one-year low last week. [EIA/S]

A counter-seasonal oil market deficit of around 400,000 barrels per day (bpd) will supportnbsp;Brent crudenbsp;prices in the $70 to $75 a barrel range during the next quarter, Citi analysts said on Thursday, but added prices could plunge in 2025.–Reutersnbsp;

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