Oil prices hold steady as Russian supply concerns linger

September 17, 2025 (MLN): Oil prices held steady in early trading on Wednesday, after climbing more than 1% in the previous session amid worries about disruptions to Russian supply following drone strikes on ports and refineries.

The gains came as traders weighed geopolitical risks against monetary policy expectations.

Brent crude futures went up by $0.92, or 1.36%, to $68.33 per barrel.

West Texas Intermediate (WTI) crude futures decreased by $0.10, or 0.15%, to $64.42 per barrel by [10:22 am] PST.

 European Commission President Ursula von der Leyen on Tuesday called for accelerating the phase-out of Russian fossil fuel imports and tightening economic pressure on Moscow, adding to concerns over long-term supply stability, according to CNBC.

Markets are now turning their attention to the outcome of the U.S. Federal Reserve’s September 16–17 policy meeting.

The Fed is widely expected to cut interest rates by 25 basis points on Wednesday, a move that could stimulate economic activity and boost fuel demand. A

Analysts, however, say investors will be closely monitoring the size of the dissent within the Fed, the bank’s outlook for additional cuts, and the tone of Chair Jerome Powell’s press conference.

“The focus will be on how many members join Stephen Miran in dissenting in favour of a 50-basis point rate cut, whether the outlook indicates two or three 25-basis point cuts, and the tone of Fed Chair Powell during the press conference,” said Tony Sycamore, market analyst at IG to CNBC.

 He added that any “buy-the-rumor, sell-the-fact” reaction in crude and other risk assets may be short-lived given the possibility of further cuts in October and December.

In a potentially bullish sign for oil, industry data on Tuesday showed U.S. crude and gasoline inventories declined last week.

According to the American Petroleum Institute, crude stocks fell by 3.42 million barrels and gasoline inventories dropped by 691,000 barrels in the week ending September 12. Distillate inventories, however, rose by 1.91m barrels.

Traders will be watching official data from the U.S. Energy Information Administration, due later on Wednesday, to confirm whether the declines in crude and gasoline stocks are as steep as the API estimates.

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