Oil prices decline influenced by anticipation of the Federal Reserve's decision and the repercussions of attacks on Russian facilities

Oil prices saw a slight decline during trading on Wednesday, following strong gains recorded in the previous session exceeding 1%, in response to drone attacks targeting Russian ports and oil refineries, amid market anticipation of a potential interest rate cut by the U.S. Federal Reserve.

By mid-session, Brent crude futures fell 0.1% to $68.35 per barrel, while West Texas Intermediate crude futures dropped 0.1% to $64.43 per barrel.

The gains achieved yesterday were due to traders' fears of disruptions in oil supplies from Russia, the largest global exporter. These concerns were bolstered by a warning issued by the Russian company "Transneft," which monopolizes oil pipelines, to producers about the "possibility of having to cut production," according to sources in the oil sector reported to "Reuters" on Tuesday. This warning came "following drone attacks carried out by Ukraine on export ports and oil refineries."

The market is closely awaiting the results of the Federal Open Market Committee meeting dedicated to monetary policy, which began on Tuesday and ends on Wednesday, where it is widely expected that the U.S. central bank will cut interest rates by 25 basis points, in a move believed to stimulate the economy and boost fuel demand.

Commenting on market expectations, Tony Sycamore, a market analyst at IG, said: "The focus will be on 'the number of members who will join the opposition with Stephen Miran to support a 50 basis point rate cut,' and whether expectations indicate two or three cuts of 25 basis points, in addition to 'the tone of Federal Reserve Chair Jerome Powell during the press conference.'"

The meeting is taking place amid an atmosphere of anticipation, with Stephen Miran joining the discussions, while Lisa Cook faces President Donald Trump's efforts to oust her.