Federal Reserve rate outlook in focus
EU tightens sanctions on Russian oil shipping
To come US EIA oil stocks data

SINGAPORE, Dec 18 Reuters Oil prices edged higher on Wednesday as investors remained cautious ahead of an expected interest rate cut by the U.S. Federal Reserve, while weighing up the potential supply impact of tighter sanctions on Russia.

Brent futures rose 32 cents, or 0.44, to 73.51 a barrel at 0730 GMT, while U.S. West Texas Intermediate crude climbed 32 cents, or 0.46, to 70.40 a barrel.

The market is watching out for clues on interest rate moves for 2025 following the Federal Open Market Committee39;s FOMC meeting, which ends later on Wednesday, analysts said.

Additional sanctions from the West may limit some losses in today39;s session, but a cautious tone persists in the leadup to the FOMC meeting, said Yeap Jun Rong, market strategist at IG.

Looking ahead, oil prices are likely to remain constrained within their current range, with subdued price action expected to persist through the end of the year, Yeap added.

The Fed on Wednesday is widely expected to cut interest rates for the third time since its policy easing cycle began. Lower rates decrease borrowing costs, which can boost economic growth and demand for oil.

Projections for rate cuts in 2025 are being secondguessed, especially with Trump planning a comeback on January 20, said Priyanka Sachdeva, senior market analyst with Phillip Nova.

There is a prevailing narrative that…