Oil Prices Ease After Traders Await Fed Rate Decision Amid EU Delays Sanctions

Benchmark Brent crude prices fell 16 cents to $67.28 per barrel, while U.S. West Texas Intermediate prices also declined 0.3% to $63.14 per barrel at 4.36 a.m. ET.

Oil prices eased after gaining in early trading, after concerns over further sanctions on Russia eased, with investors bracing themselves for the Federal Reserve’s decision on the benchmark interest rates.

Benchmark Brent crude prices fell 16 cents to $67.28 per barrel, while U.S. West Texas Intermediate prices also declined 0.3% to $63.14 per barrel at 4.36 a.m. ET. Retail sentiment on Stocktwits about the United States Oil Fund (USO) was in the ‘bearish’ territory at the time of writing.

According to a Reuters News report, the European Commission will delay presenting its next Russia sanctions package, as the group is trying to muster a response to the Trump administration's demand that it phase out purchases of Russian oil and gas faster.

Over the past few weeks, the Trump administration has signaled that it is willing to put additional tariffs on China and India, but only if Europe matches the measures. The EU currently expects to phase out Russian oil and gas by Jan. 1, 2028, to avoid a supply shock to its economy.

Oil markets have found support in recent weeks as Ukraine has continued to hit Russian energy facilities, raising concerns over crude supply. Over the weekend, Ukraine launched hundreds of drones at Russia, hitting the Kirishinefteorgsintez refinery, one of the two biggest refineries in the country.

Goldman Sachs analysts estimate that about 300,000 barrels per day of Russian refining capacity has been offline since August due to the Ukrainian assault.

Investors will also be watching the outcome of this week’s meeting of the Federal Reserve policymakers, with the U.S. central bank widely expected to deliver a 25-basis-point cut to benchmark interest rates.

Lower interest rates are considered bullish for the oil markets, as a rise in spending is generally accompanied by a spike in crude consumption.

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