Oil slips on weak fuel demand despite fed’s first rate cut

September 19, 2025 (MLN): Oil prices slipped on Friday as persistent worries over weakening fuel demand in the United States outweighed optimism that the Federal Reserve’s first interest rate cut of the year could stimulate consumption.

Brent crude futures went down by $0.25 or 0.37%, to $67.19 per barrel.

West Texas Intermediate (WTI) crude futures decreased by $0.31, or 0.49%, to $63.26 per barrel by [11:00 am] PST.

The Fed reduced its benchmark interest rate by a quarter percentage point on Wednesday and signaled the possibility of further cuts, citing signs of softness in the labor market.

Typically, lower borrowing costs encourage economic activity and energy use, providing support for oil prices.

“The market has been caught between conflicting signals. On the demand side, all energy agencies, including the Energy Information Administration, have signaled concern about weakening demand, tempering expectations of significant near-term price upside,” said Priyanka Sachdeva, an analyst at Phillip Nova.

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