West Texas Intermediate (WTI) oil prices corrected lower after posting gains in the previous session, trading around $70.50 per barrel during the Asian session on Monday (12/16). Crude oil prices rose amid rising expectations of tighter supplies driven by the imposition of additional US sanctions on major producers Russia and Iran.

US Treasury Secretary Janet Yellen told Reuters on Friday that the United States was considering further sanctions on "black fleet" tankers and may also impose sanctions on Chinese banks to curb Russian oil revenues and access to foreign supplies, which fueled its war in Ukraine.

In addition, optimism about China's plans to increase economic stimulus could boost oil demand. Chinese authorities, led by President Xi Jinping, have pledged to raise their fiscal deficit target next year, shifting policy focus to consumption to boost the economy amid the threat of US tariffs of 10% that threaten exports.

Crude oil prices, often referred to as "liquid gold," also got a boost from improved market sentiment following recent interest rate cuts by central banks in Canada, Europe and Switzerland. Traders are now focused on the Federal Reserve's upcoming policy decision on Wednesday, where a 25 basis point rate cut is widely anticipated. Such a move could stimulate economic growth and potentially boost oil demand, as lower borrowing costs are likely to have a positive impact on economic activity.

Source: Investing.com