Oil Prices Decline as Federal Reserve Signals Slower Rate Cuts in 2025

Weaker demand projections and a stronger U.S. dollar weigh on oil markets following the Fed's cautious outlook.

Brent crude fell to $73.10 per barrel and West Texas Intermediate to $70.42 following the Federal Reserve's projection of only two rate cuts in 2025.
The Federal Reserve's slower pace of rate reductions could strengthen the U.S. dollar, making oil more expensive for global buyers and dampening demand.
U.S. crude stocks declined by 934,000 barrels last week, less than the expected 1.6 million-barrel draw, while exports rose significantly by 1.8 million barrels per day.
Analysts forecast a challenging demand-supply balance in 2025, with global oil consumption growth underperforming earlier expectations by 700,000 barrels per day in December.
New sanctions from the European Union and Britain targeting Russian oil transport fleets add potential volatility but have not disrupted global oil flows significantly.