Crude Oil Prices Drop as Markets Expect U.S. Fed Interest Rate Cut

04:53 AM EDT, 09/17/2025 (MT Newswires) -- Crude oil prices fell on Wednesday as markets expect an interest rate cut from the U.S. Federal Reserve during their meeting.

Brent crude at last look lost 0.7% to US$68/barrel and West Texas Intermediate crude fell 0.7% to US$64.06/b. This comes after prices jumped in the previous session amid concerns about the impacts on supply of Ukrainian attacks on Russian energy infrastructure.

"Markets are betting on a 25-basis-point Fed rate cut tonight, which traders believe could ease borrowing costs and boost fuel demand," Reuters quoted Priyanka Sachdeva, a senior market analyst at Phillip Nova, as saying in a Wednesday report.

Despite price support from geopolitical jitters, markets remain cautious as a global oversupply outlook remains in the cards for the remainder of 2025 due to higher output from the Organization of the Petroleum Exporting Countries and allied producers, Reuters reported, citing analysts.

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