Oil prices rise after US interest rate cut

TDT | Manama

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Oil prices rose yesterday after a large interest rate cut from the US Federal Reserve, but concerns over global demand lingered and capped gains. Brent crude futures for November were up 36 cents, or 0.5%, to $74.01 a barrel at 0618 GMT, while WTI crude futures for October were up 34 cents, or 0.3%, to $71.15 a barrel. The benchmarks recovered after falling in early Asian trade, Reuters reported. The US central bank cut interest rates by half a percentage point on Wednesday. Interest rate cuts typically boost economic activity and energy demand, but the market also saw it as a sign of a weaker US labour market that could slow the economy.