Oil prices experienced a slight decline on Friday, taking a pause after recent gains primarily driven by the Federal Reserve’s interest rate cuts.
On Friday morning, the price of North Sea Brent crude for November delivery fell by 0.39% to $74.59 per barrel. In contrast, West Texas Intermediate (WTI) crude for October delivery—its final trading day—decreased by 0.14% to $71.85.
“This is a natural and almost inevitable profit-taking ahead of the weekend,” following the increases over the past two days, “driven by the Fed’s decision regarding interest rates,” noted analysts.
According to experts, the market has already absorbed the Fed’s decision, resulting in oil prices stabilizing around their highest levels in two weeks.
Oil prices “are still on track to record a second consecutive week of increases, largely due to the 0.5 percentage point reduction in the Fed’s interest rate” and “the decline in global inventories,” analysts explained. Investors are also closely monitoring the escalation of geopolitical tensions.
