Oil prices fell over 2% on Friday, as supply fears from Hurricane Rafael eased and China’s economic stimulus measures underwhelmed traders. U.S. WTI crude futures dropped by $1.98 (2.7%) to $70.35 per barrel, and Brent crude fell by $1.76 (2.3%) to $73.87 per barrel.

Energy producers had preemptively shut down more than 23% of Gulf oil output, but revised forecasts showed Rafael posed a lower threat, with the storm expected to remain in the Gulf’s center. Alex Hodes of StoneX remarked, “Threats of supply outages…are subsiding.”

Meanwhile, China’s stimulus measures, which focused on easing local government debt, did not meet oil investors’ expectations for demand-boosting actions. UBS analyst Giovanni Staunovo noted, “I guess some market participants were hoping for more stimulus measures…Hence, the disappointment.”

China’s economic slowdown continues to weigh on oil, with October marking the sixth consecutive month of year-over-year declines in crude imports. However, despite Friday’s decline, oil prices gained more than 1% over the week, supported by anticipated U.S. sanctions on Iran and Venezuela under President-elect Donald Trump, which could reduce global supply. The Federal Reserve’s quarter-point interest rate cut on Thursday also lifted oil prices over 1% in the previous session.

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