Oil prices remained virtually unchanged after the US Federal Reserve cut rates
19 September 2025 08:56
On Friday, oil prices remained almost unchanged after falling in the previous trading session amid the first interest rate cut by the US Federal Reserve this year. Investors are now concerned about the demand for fuel in America, "Komersant Ukrainian" reports citing Reuters.
Futures for Brent crude oil fell by 1 cent to $67.43 per barrel as of 03:00 Kyiv time, while futures for US WTI crude oil fell by 4 cents to $63.53. Both benchmark oil grades have every chance of ending the second consecutive week with growth.
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The situation in the United States
On Wednesday, the Federal Reserve cut its benchmark rate by a quarter of a percentage point and signaled further cuts in response to signs of labor market weakness.
Lower borrowing costs usually stimulate demand for oil and push prices up. However, a 4 million barrel increase in US distillate stocks against market expectations of 1 million barrels has heightened demand concerns in the world’s largest oil consumer and put pressure on prices.
“The rise of the US dollar and long-term US bond yields further undermined support for crude oil,”
– said IG analyst Tony Sycamore.
The dollar index rose by 0.43% to 97.37, strengthened by 0.52% to 0.793 against the Swiss franc and rose by 0.67% to 147.95 against the Japanese yen.
Economic data also added to the worries. Unemployment claims statistics released this week pointed to a softening of the U.S. labor market with a decline in both labor supply and demand. At the same time, construction of single-family homes in August fell to a 2.5-year low due to an oversupply of unsold new housing.
The market is confident that all is well in Russia
In Russia, the world’s second-largest oil producer after the United States in 2024, the Finance Ministry announced a new measure to protect the state budget from oil price fluctuations and Western sanctions, somewhat easing market concerns about supply.
“President Trump’s comment that he prefers low prices to sanctions against Russia also eased fears of supply disruptions,”
– aNZ analyst Daniel Hines said in a note on Friday.
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