08:55 AM EDT, 09/20/2024 (MT Newswires) -- Oil prices weakened early on Friday as traders took profits following day-prior gains prompted by a cut to U.S. interest rates even as the threat of an expanding Mideast war is on the rise.

West Texas Intermediate crude for October delivery was last seen down US$0.30 to US$71.65 per barrel, while November Brent crude, the global benchmark, was down US$0.34 to US$74.52 per barrel.

After falling to three-year lows last week, oil pushed back above US$70.00, where it has traded for most of the past month, supported by tight supply and short covering by institutional buyers. Weak demand from China and slowing Western economies have limited the commodity's upside, though Wednesday's 50 basis point cut to U.S. interest rates is raising hopes for a rebounding U.S. economy and a higher call on supply from the No.1 oil consumer.

"After the FED opened the door for risk appetite overnight on Wednesday, it did take a little while for the ever-present bulls to step through ... One can only surmise that digestion of the chunky rate cut had to first dismiss the notion that in some ways it was defensive amid the recent poor employment data which the claims eased," PVM Oil Associates noted.

Rising geopolitical tensions are being watched as Israel steps up attacks on Lebanon's Iran-backed Hezbollah militia. After booby-trapped pagers and walkie-talkies used by Hezbollah exploded this week, causing deaths and injuring thousands, Israel and Hezbollah are stepping up attacks over the Israel-Lebanon border. Hezbollah on Friday sent 140 rockets into northern Israel, according to an Associated Press report, with no reports of casualties.

"Even before the handheld device explosions, the trendline appeared to point in the direction of stepped-up Israeli action. On Monday, Israel's cabinet announced that it would be an official war goal to halt Hezbollah attacks and to resettle (evacuated citizens) in the north. The question now is whether the action this week is a prelude to a broader military engagement or intended to rattle and demoralize Hezbollah to convince them to back away from their support of Hamas," said Helima Croft, head of global commodity strategy and MENA research at RBC Capital Markets.