Oil prices hold steady as markets await fed rate decision

Crude oil prices were steady on Wednesday, with traders focused on the U.S. Federal Reserve’s interest rate decision due later in the day.

Brent crude traded at $68.33 per barrel, while West Texas Intermediate stood at $64.39, both largely unchanged from Tuesday’s close. Prices had climbed earlier in the week after a Reuters report suggested Russian pipeline operator Transneft had warned of possible production cuts following Ukrainian drone attacks on refineries.

Transneft later denied the claim, calling it part of an “information war” aimed at damaging its reputation, according to Russia’s Kommersant.

Attention now turns squarely to the Fed, which is widely expected to cut rates by 25 basis points to a range of 4%–4.25% — the lowest level since 2022. Economists say the move could pave the way for further easing through the rest of the year. Wells Fargo’s Sarah House told the BBC she expects cumulative cuts of up to 75 basis points by year-end, noting the Fed is acting preemptively as the U.S. labour market slows.

Traders are also monitoring geopolitical risks, including the prospect of new Western sanctions on Russian oil. ING analysts said there are signs the European Union may target companies in India and China accused of facilitating Russian energy exports, raising fresh concerns over supply.