Sept 20 Reuters Oil prices eased on Friday, but were on track to register gains for a second straight week following a large cut in U.S. interest rates and declining global stockpiles.

Brent futures were down 50 cents, or 0.67, at 74.38 a barrel at 1004 GMT while U.S. WTI crude futures fell 48 cents, or 0.65, at 71.47.

Still, both benchmarks were up 3.7 and 4 respectively on the week.

Prices have been recovering after Brent fell below 69 for the first time in nearly three years on Sept. 10.

U.S. interest cuts have supported risk sentiment, weakened the dollar and supported crude this week, UBS analyst Giovanni Staunovo said.

However, it takes time until rate cuts support economic activity and oil demand growth, he added, regarding crude39;s more muted performance so far on Friday.

Prices rose more than 1 on Thursday following the U.S. central bank39;s decision to cut interest rates by half a percentage point on Wednesday.

Interest rate cuts typically boost economic activity and energy demand, but some also see it as a sign of a weak U.S. labour market.

The Fed also projected a further halfpoint rate cut by yearend, a full point next year and a halfpoint trim in 2026.

Easing monetary policy helped reinforce expectations that the U.S. economy will avoid a downturn, ANZ Research analysts said.

Also supporting prices were a decline in U.S. crude inventories, which fell to a oneyear low last week.

A counterseasonal oil market deficit of around 400,000 barrels per…