Oil prices to end week higher after US interest rate cut By Reuters

SINGAPORE (Reuters) – Oil prices, which were little changed in early Asian trade on Friday, were on course to end lower for a second straight week after a sharp cut in U.S. interest rates and falling global stocks.

Brent futures, which traded 19 cents or 0.3 percent lower at $73.69 a barrel by 0027 GMT on Friday, have gained 4.3 percent this week. , which rose 6 cents to $72.01 a barrel, posted weekly gains of 4.8 percent.

The benchmark recovered from a near three-year low on September 10 and has posted gains in five of the seven sessions since then.

The US central bank cut interest rates by half a percentage point on Wednesday. Interest rate cuts typically boost economic activity and energy demand, but some also saw the big cut as a sign of a weak U.S. labor market.

U.S. crude stockpiles, the world’s top producer, fell to a one-year low last week, government data showed on Wednesday. (EIA/S)

An unseasonal oil market shortfall of about 400,000 barrels per day (bpd) will support prices in the $70-$75 per barrel range next quarter, Citi analysts said on Thursday, but added prices could fall in 2025.

Crude oil prices were also supported by rising tensions in the Middle East. Walkie-talkies used by the Lebanese armed group Hezbollah exploded on Wednesday after similar pager explosions the previous day.

Security sources said Israel’s Mossad spy agency was responsible, but Israeli officials have not commented on the attacks.

Weak demand from China’s slowing economy weighed on prices, with Chinese refinery output slowing for a fifth month in August. China’s industrial output growth also slowed to a five-month low last month, and retail sales and new home prices fell further.