Oil Prices Slip as U.S. Demand Concerns Offset Fed Rate Cut

PUKMEDIA

Oil prices.

Oil prices eased on Friday, 19 September 2025, as concerns over weakening fuel demand in the United States outweighed expectations that the Federal Reserve’s first interest rate cut of the year would stimulate consumption.

According to Reuters report, Brent crude futures fell by 15 cents, or 0.2%, to $67.29 per barrel at 04:32 GMT, while U.S. West Texas Intermediate (WTI) futures slipped 23 cents, or 0.4%, to $63.34. Despite the decline, both benchmarks remained on track to finish higher for the second consecutive week.

The U.S. Federal Reserve on Wednesday cut its policy rate by a quarter of a percentage point, signalling that further reductions were likely in response to signs of weakness in the labour market. Typically, lower borrowing costs boost economic activity and oil demand, supporting prices.

However, U.S. inventory data tempered optimism. Distillate stockpiles rose by 4 million barrels, well above market expectations of a 1 million barrel increase, raising concerns about slowing demand in the world’s largest oil consumer.

Broader economic data added to market unease. Jobless claims released this week indicated that both demand for and supply of labour are weakening, while single-family housing construction slumped to a two-and-a-half-year low in August amid an oversupply of unsold homes.

Elsewhere, Russia – the world’s second-largest crude producer in 2024 after the United States – announced new measures to shield its state budget from oil price fluctuations and Western sanctions, helping to ease some supply concerns.



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