Oil inched slightly lower on Friday as FED rate cut impact dwindled

The international crude oil markets closed marginally lower on Friday, September 20, 2024, as the initial boost from the Federal Reserve’s aggressive interest rate cut began to lose momentum. Despite this, both Brent and WTI posted their second consecutive weekly gains.

Brent crude settled at $74.49/barrel, down $0.39.

WTI decreased by $0.03, closing at $71.92/barrel.

However, concerns over weak demand for key commodities from China continue to cast a shadow over any sustained price rallies. Analysts caution that this demand shortfall may cap further gains, even as both benchmarks managed to rise by more than 4% for the week. The Federal Reserve's rate cut, while initially stimulating optimism, now faces scrutiny as its long-term impact appears uncertain.

Written by: Muhammad Hafiz 

Edited by: Rochelle Nguyen