Oil prices dropped Friday as oversupply fears and weak demand signals outweighed the potential boost from this week’s Fed rate cut. Brent crude settled at $66.68, down 76 cents (−1.1%), while WTI closed at $62.68, down 89 cents (−1.4%).
The market remains under pressure from robust OPEC+ output, steady Russian exports, and demand concerns flagged by global energy agencies.
The Fed’s 25 bp cut on Wednesday was its first of the year, with signals of more to come. While lower borrowing costs can spur consumption, analysts noted the move reflects underlying economic weakness. U.S. distillate stockpiles climbed by 4 million barrels, well above forecasts, further stoking demand worries.
“Supply remains heavy, and refinery turnaround season will weigh on demand,” said Andrew Lipow of Lipow Oil Associates. Phil Flynn of Price Futures Group added that only a more aggressive Fed cut might lift crude demand.