Oil prices fell in early Friday trading, influenced by a recent interest rate cut from the U.S. Federal Reserve and potential supply risks from Hurricane Rafael.
Chinese crude oil imports remained low despite Beijing’s economic stimulus efforts, and OPEC+ opted to maintain current output levels.
Brent crude dropped to $74.76 per barrel, while the U.S. benchmark, West Texas Intermediate (WTI), decreased to $71.27.
In Cuba, Hurricane Rafael, the fifth major Atlantic storm of the year, made landfall with heavy rains and strong winds, severely impacting the electricity grid and leading to widespread power outages.
Now downgraded to a Category 2, the storm is expected to move westward across the Gulf of Mexico over the weekend, posing a reduced threat to U.S. coastal oil facilities. Initial concerns about disruptions to U.S. production facilities have eased as the storm’s projected path shifted away from the coast.
Meanwhile, political uncertainty in the U.S. ended with Republican candidate Donald Trump’s victory. Following the election, investors turned their focus to the Fed’s decision to lower interest rates by 25 basis points, bringing the range to 4.5%-4.75%.
Fed Chair Jerome Powell assured that the election outcome would not impact the Fed’s immediate policy decisions.