Many people don’t consider the relationship between a rate cut that some say is needed to help a troubled mortgage market, and the price of oil. A rate cut stimulates the economy, thus people have more demand for oil, i.e., gasoline. “What’s been weighing down on the crude oil futures market is concern about the U.S. economy,” said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. “If the expected cut indeed holds true or is actually larger, it will bolster the U.S. economic outlook, and that’s supportive of oil pricing.”
