Oil prices slipped lower Friday on growing concerns over slowing U.S. demand, but were still on track for weekly gains as the Federal Reserve's rate cut could spur consumption.

At 04:50 ET (08:50 GMT), Brent oil futures for November fell 0.5% to $67.11 a barrel, and West Texas Intermediate crude futures dropped 0.7% to $63.10 a barrel.

Both benchmarks were on course for small gains this week as increased hostilities between Russia and Ukraine spurred bets on more supply disruptions.

That said, President Trump has called for lower oil prices to pressure Moscow to end the war in Ukraine. Trump said the war would end "if the price of oil comes down," and repeated calls for countries to stop buying fuel from the OPEC+ member.

Oil helped by Fed cut

The crude market was boosted by the Fed cutting interest rates and signaling that it will cut rates further in the coming months. Lower U.S. interest rates are expected to help shore up demand in the coming months.

This may be needed as U.S. inventory data this week showed a sharp increase in distillate stockpiles, pointing to a slowing in U.S. demand as the summer driving season comes to an end.

Continued signs of a cooling U.S. labor market also kept oil markets on edge over slowing demand. 

Additionally, expectations of higher supplies were furthered by Kazakhstan resuming oil supplies via the Baku-Tbilsi-Ceyhan (BTC) pipeline earlier in September, the government said this week.

Supplies through the route were suspended in August due to contamination issues. The pipeline is mainly used to export oil from three key oil fields, and also allows Kazakhstan to export oil without depending on Russia as a main route.

Elsewhere, Nigeria lifted emergency rule in its oil-rich Rivers State after six months, stating that a constitutional crisis in the region was resolved.

The region is a key exporting hub for Nigeria's oil industry, with militants in the past having targeted local pipelines.

Source : Investing.com