Oil prices dropped on Wednesday after rising by over 1% in the previous session due to ongoing concerns about Russian supply disruptions from Ukrainian attacks. Despite this, traders are watching for an expected interest rate cut from the US Federal Reserve later that day.
Brent crude futures fell by 33 cents to $68.14 a barrel, while US West Texas Intermediate crude futures dropped 32 cents to $64.20 a barrel. Analysts say if the drone damage to Russian energy infrastructure proves short-lived, prices may return to their recent range of around $5 per barrel.
The market is also waiting for the outcome of the Federal Reserve’s meeting, with many expecting a 25-basis-point rate cut that could ease borrowing costs and boost fuel demand. However, some analysts remain cautious due to global supply risks from conflicts and the ongoing OPEC+ output increase.
US crude and gasoline stocks fell last week, while distillate stocks rose, according to market sources citing American Petroleum Institute figures. The US Energy Information Administration is also set to release data on crude inventories later in the day.
Source: https://www.reuters.com/business/energy/oil-retreats-geopolitical-jitters-limit-declines-2025-09-17