Crude Oil Holds Firm on Sep 17, 2025 Ahead of Fed Decision and Russian Supply Risks

Crude oil prices remained steady as investors balanced potential disruptions in Russian supply with anticipation over the US Federal Reserve’s rate decision.

While geopolitical risks from Ukraine’s drone attacks keep energy markets tense, traders are closely monitoring whether the Fed’s policy stance will stimulate demand for fuel in the months ahead.

Russia Supply Risks Loom Large

According to Reuters, Russia’s oil pipeline monopoly has warned producers that they may be forced to scale back output after Ukraine’s drone strikes targeted export hubs and refineries. Prices had already climbed more than 1% in the previous session as fears of tighter Russian supply mounted.

Europe Pushes to Cut Russian Fossil Fuels

On the policy front, European Commission President Ursula von der Leyen reiterated that the EU will accelerate its phase out of Russian fossil fuel imports.

She called for intensifying economic pressure on Moscow as the conflict continues to disrupt global energy dynamics.

Markets are now awaiting the outcome of the Federal Reserve’s September 16–17 meeting, where policymakers are widely expected to cut rates by 25 basis points.

US Inventory Data Sends Mixed Signals

American Petroleum Institute (API) figures showed U.S. crude stocks dropped by 3.42 million barrels last week, while gasoline inventories fell by 691,000 barrels. Distillate stocks, however, rose by nearly 1.91 million barrels. The official US Energy Information Administration (EIA) report, due Wednesday, will be closely watched to confirm or challenge the API’s data.

Read More: ONGC to Keep Buying Russian Oil if Profitable, Says Chairman.

Conclusion

Oil markets remain finely balanced as supply concerns from Russia collide with expectations of monetary easing in the US While short term price movements may react to the Fed’s decision, longer term direction will hinge on geopolitical developments and global inventory trends.

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