Oil Prices Steady Ahead of Fed Decision

18 Dec 2024 , 09:02 AM

As investors remained cautious ahead of an anticipated interest rate cut by the U.S. Federal Reserve, oil prices moved in a narrow range early on Wednesday.

U.S. West Texas Intermediate crude increased 11 cents, or 0.16%, to $70.19 a barrel, while Brent futures crept up 12 cents, or 0.16%, to $73.31 a barrel.

It is generally anticipated that the Fed would lower interest rates on Wednesday for the third time since the start of its policy easing cycle.
Analysts predict that any remarks regarding interest rate changes in 2025 will be more significant for the oil market.

Reduced borrowing costs due to lower rates might increase demand for oil and economic growth.

The European Union included 33 more ships from Russia’s shadow fleet that are used to transport oil or petroleum products to its 15th set of sanctions against the country for its invasion of Ukraine on Tuesday. Twenty ships were also sanctioned by Britain for transporting illegal Russian oil.

Although the new sanctions haven’t been successful in keeping Russia out of the world oil trade thus far, they could cause more volatility in the price of oil.

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