Crude Oil Slips as Fed Decision, Geopolitics Keep Investors Cautious

05:31 AM EST, 12/08/2025 (MT Newswires) -- Crude oil prices declined on Monday as investors remain in a wait-and-see mode regarding impacts of U.S. Federal Reserve interest rates and geopolitical developments on the oil market.

Brent crude at last look fell 0.7% to US$63.28/barrel and West Texas Intermediate crude lost 0.8% to $59.61/b. Both benchmarks ended the previous week at their highest levels since Nov. 18, Reuters said in a Monday report.

Investors are expecting a quarter-point rate cut at the Fed meeting on Tuesday and Wednesday, but comments from the board members indicate that the meeting will be one of the most divisive in years, Reuters reported.

Meanwhile, progress on Russia-Ukraine peace talks continue to lag amid disputes over security guarantees for Ukraine and the status of Russia-occupied territory, the report said.

"If there's any kind of agreement reached in near future on Ukraine, then Russian oil exports should increase and put downward pressure on oil prices," Reuters quoted Tamas Varga, oil market analyst at PVM, as saying.

A ceasefire is a key downside risk to the oil price outlook, and damage from attacks on Russian energy infrastructure is a main upside risk, with the swing expected to be more than 2 million barrels per day depending on the outcomes of peace talks, analysts said in the report.

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