Oil futures edge lower as investors await outcome of Fed meeting
Date
12/16/2024 1:34:30 AM
(MENAFN) Oil futures edged lower from multi-week highs as investors awaited the outcome of the upcoming Federal Reserve meeting for insights on the future trajectory of interest rates. The retreat in prices came as traders weighed economic concerns, but losses were tempered by lingering fears over potential supply disruptions stemming from geopolitical tensions.
Brent crude futures dipped 21 cents, or 0.3 percent, to USD74.28 a barrel by 0110 GMT, following their highest close since November 22. Similarly, U.S. West Texas Intermediate (WTI) crude declined by 30 cents, or 0.4 percent, to USD70.99 a barrel, retreating from its strongest settlement since November 7 in the prior session.
The market has been buoyed in recent days by the European Union's implementation of new sanctions targeting Russian oil. Expectations of tighter U.S. sanctions on Iranian oil supplies further supported prices, according to IG market analyst Tony Sycamore. These measures have added to the global supply concerns amid already volatile market conditions.
Adding to the pressure on global oil flows, U.S. Treasury Secretary Janet Yellen indicated the United States was considering stricter actions against "dark fleet" oil tankers, which employ cloaking techniques to bypass sanctions. Yellen also mentioned the possibility of targeting Chinese banks as part of efforts to limit Russia's oil revenue and strengthen foreign energy supplies to support Ukraine amidst the ongoing conflict.
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