SINGAPORE, Dec 16 Reuters Oil futures eased from their highest levels in weeks as traders took profit while waiting for a Federal Reserve meeting later this week for clues on further rate cuts.

Falls were limited, however, by concerns of supply disruptions in the event of more U.S. sanctions on major suppliers Russia and Iran.

Brent crude futures fell 29 cents, or 0.4, to 74.20 a barrel by 0746 GMT after settling at their highest level since Nov. 22 on Friday.

U.S. West Texas Intermediate crude dropped 36 cents, or 0.5, to 70.93 a barrel after reaching its highest settlement level since Nov. 7 in the previous session.

After last week39;s 6 rally, and with crude oil trading towards the top of recent range highs, we are likely seeing some light profittaking, IG market analyst Tony Sycamore said.

Also it is likely a lot of trading books at banks and funds shut up shop at the end of last week and have reduced appetite for positions over the festive season.

Oil prices were bolstered by new European Union sanctions on Russian oil last week and expectations of tighter sanctions on Iranian supply, he added.

U.S. Treasury Secretary Janet Yellen told Reuters on Friday that the U.S. is looking at further sanctions on dark fleet tankers and will not rule out sanctions on Chinese banks as it seeks to reduce Russia39;s oil revenue and access to foreign supplies to fuel its war in Ukraine.

Fresh U.S. sanctions on entities trading Iranian oil are already driving prices of the…