Oil Holds Near Two-Week Peak Ahead of Fed Rate Announcement

Oil prices remained steady in Asian trading on Wednesday after recent gains driven by concerns over potential disruptions in Russian output. Attention now turns to the U.S. Federal Reserve’s interest rate decision, which could influence crude demand.

Brent futures for November slipped slightly to $68.39 a barrel, while West Texas Intermediate fell to $64.09 a barrel as of 21:48 ET (01:48 GMT). Recent U.S. industry data showed a sharp 3.2 million-barrel draw in inventories for the week ending September 12, according to the American Petroleum Institute, typically signaling similar trends in the official government report due later in the day.

Oil has also been supported by a softer U.S. dollar, with markets pricing in a likely 25 basis point Fed rate cut, though some traders anticipate a larger 50-point reduction. Lower rates generally boost economic activity, which can lift fuel demand, yet caution remains over the Fed’s future guidance given persistent inflation concerns.

Geopolitical tensions continue to influence oil markets. Recent Ukrainian strikes on Russian energy infrastructure have raised the prospect of output cuts, with Transneft warning of potential production disruptions. Meanwhile, U.S. President Donald Trump has advocated higher tariffs on major Russian crude buyers such as China and India, further tightening supply expectations.

After a volatile August, when fears of oversupply weighed on prices, oil markets are now watching closely for both geopolitical developments and central bank signals that could shape near-term supply-demand dynamics.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.