Oil rates dip as traders take profits, await signals from Fed
Date
12/16/2024 7:32:05 AM
(MENAFN) Oil futures dipped slightly from multi-week highs as traders took profits and awaited signals from the Federal Reserve's upcoming meeting regarding potential rate cuts, according to Reuters. Despite the decline, losses were limited due to concerns over possible supply disruptions if the U.S. imposes additional sanctions on major producers Russia and Iran.
Brent crude futures dropped 21 cents, or 0.3 percent, to USD74.28 a barrel by 07:24 a.m. Saudi time, following Friday’s settlement at their highest level since November 22. Similarly, U.S. West Texas Intermediate (WTI) crude fell 30 cents, or 0.4 percent, to USD70.99 a barrel after achieving its highest settlement since November 7 in the previous session.
Tony Sycamore, an analyst at IG Markets, attributed the slight decline to profit-taking after last week’s 6 percent rally and oil prices reaching the upper end of their recent range. He noted that many trading books at banks and funds likely closed for the year, reducing appetite for new positions ahead of the festive season.
Oil prices have recently been supported by new EU sanctions on Russian oil and the expectation of tighter restrictions on Iranian exports. U.S. Treasury Secretary Janet Yellen also told Reuters on Friday that the U.S. is considering additional sanctions on "dark fleet" tankers used to transport Russian oil and may target Chinese banks to limit Russia’s oil revenue and access to foreign resources, which fund its war in Ukraine.
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