Oil prices eased slightly on Wednesday as markets weighed the US Federal Reserve’s upcoming rate decision and risks to supply from the Russia-Ukraine war.
Brent crude traded at $68.05 a barrel at 9.43 a.m. local time (0643 GMT), down 0.2% from the previous close of $68.18.
US benchmark West Texas Intermediate (WTI) slipped 0.01% to $64.08.
The Fed is expected to cut rates by 25 basis points later Wednesday, with markets eyeing updated economic projections and Chair Jerome Powell’s comments for signals on the policy path.
Analysts warned that while lower borrowing costs could lift demand, a global surplus is likely to persist as OPEC+ continues raising output.
- Sanctions risk supports prices
Meanwhile, geopolitical concerns are preventing sharper price declines. European Commission President Ursula von der Leyen on Tuesday said that the bloc will propose speeding up the phase-out of Russian fossil fuel imports as part of its upcoming 19th package of sanctions against Moscow.
Her remarks came after Trump criticized European allies for what he described as "not tough enough" sanctions against Russia, particularly pointing to continued oil purchases.
The G7 countries and the EU have imposed a price cap on Russian oil. In response, Russia increased sales of oil to countries such as China and India.
The 27-member bloc has pledged completely phase out imports of Russian oil and gas by Jan. 1, 2028.
In the US, industry data released Tuesday by the American Petroleum Institute showed crude oil and gasoline inventories fell last week. Crude stockpiles dropped by 3.42 million barrels in the week ending Sept. 12.
Markets are now awaiting the US Energy Information Administration's official figures, due late Wednesday, to confirm the trend.
By Ebru Sengul Cevrioglu
Anadolu Agency
energy@aa.com.tr
