Oil prices remained steady in early Wednesday trading as investors awaited the Federal Reserve’s expected interest rate cut, the third in its current easing cycle. Brent futures rose 0.16% to $73.31 per barrel, while WTI crude increased by 0.16% to $70.19 per barrel. Markets are particularly focused on the Fed’s comments regarding rate cuts in 2025, amid concerns over potential inflationary policies under a Trump administration return.
Lower interest rates could support economic growth and boost oil demand.
On the geopolitical front, the EU and the UK imposed fresh sanctions targeting Russia’s shadow fleet transporting crude and petroleum products. However, these measures have yet to significantly disrupt Russia’s role in global oil trade.
In the U.S., API data showed crude stocks fell by 4.69 million barrels last week, while gasoline and distillate inventories rose. Official storage data from the EIA is awaited for further market direction.