Oil prices edged lower on Wednesday as investors turned cautious ahead of the U.S. Federal Reserve’s March 17–18 policy meeting, where policymakers are expected to reassess the outlook for interest rate cuts. Despite the pullback, global benchmarks remained elevated, supported by ongoing geopolitical risks and supply concerns.
Brent oil slipped USD 1.33, or 1.28 per cent, to USD 102.39 a barrel, while U.S. West Texas Intermediate (WTI) crude fell USD 1.43, or 1.50 per cent, to USD 94.10 a barrel.
U.S Federal Reserve’s March 17–18 FOMC meeting will see policymakers assess the outlook on interest rate cuts. In its earlier meeting, held on January 27-28, the US Federal Reserve kept its key benchmark interest rates unchanged at 3.5 to 3.75 per cent, citing low job gains, signs of stabilisation in the labour market, and inflation that remains somewhat elevated.
Meanwhile, oil markets also digested fresh geopolitical commentary from Washington. In separate remarks, US President Donald Trump said the United States does not need assistance from NATO or allies for operations related to Iran and the Strait of Hormuz, adding that most allies are unwilling to get involved despite concerns over Iran’s nuclear ambitions.
“The United States has been informed by most of our NATO “Allies” that they don’t want to get involved with our Military Operation against the Terrorist Regime of Iran, in the Middle East, this, despite the fact that almost every Country strongly agreed with what we are doing, and that Iran cannot, in any way, shape, or form, be allowed to have a Nuclear Weapon,” Trump wrote on social media platform Truth Social.
The Fed meeting will remain a key focus point as US President Donald Trump on Friday asked Federal Reserve Chair Jerome Powell to cut interest rates without delay, accusing the central bank chief of moving too slowly. In a post on his Truth Social platform, Trump said Powell should act “IMMEDIATELY” rather than wait for the Federal Reserve’s next scheduled policy meeting. This once again spotlighted Trump’s long‑running criticism of the central bank’s approach to monetary policy.
In its policy statement released on January 28, the Federal Open Market Committee (FOMC) said, “In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 per cent.”
Previously, on Jan. 30, Trump had again intensified his attacks on Jerome Powell, labeling current interest rates a threat to US national security and the economy. Arguing that inflation is over and borrowing costs are unnecessarily high. Subsequently, on January 31, the President announced the nomination of Kevin Warsh as the successor to Jerome Powell as Federal Reserve chair.
