Oil prices slip as robust supply outweighs Fed cut

Oil prices dropped on Friday as worries about large supplies and declining demand outweighed expectations that the year's first interest-rate cut by the U.S. Federal Reserve would trigger more consumption.

Brent crude futures were down 97 cents, or 1.44%, at $66.47 a barrel by 10:42 a.m. CDT (1542 GMT), while U.S. West Texas Intermediate futures lost 72 cents, or 1.13%, to $62.85.

"Oil supplies continue to remain robust and OPEC is reducing its oil production cuts," said Andrew Lipow, president of Lipow Oil Associates. “We haven't seen an impact on Russian crude oil exports.”

The Fed cut its policy rate by a quarter of a percentage point on Wednesday and indicated that more cuts would follow as it responded to signs of weakness in the jobs market.

Lower borrowing costs typically boost demand for oil and push prices higher