Oil futures eased from multi-week highs as traders took profits while awaiting the Federal Reserve meeting later this week for clues on further interest rate cuts.

However, the declines were capped by concerns about supply disruptions if further U.S. sanctions on key suppliers Russia and Iran are imposed.

Brent crude futures were down 29 cents, or 0.4%, at $74.20 a barrel by 0746 GMT after hitting their highest since Nov. 22 on Friday.

U.S. West Texas Intermediate crude futures were down 36 cents, or 0.5%, at $70.93 a barrel after hitting their highest close since Nov. 7 in the previous session.

"After last week's +6% rally, and with crude trading near the top of its recent range, we may see a little profit-taking," said IG market analyst Tony Sycamore.

"It's also likely that many trading books at banks and funds were closed at the end of last week and that has reduced appetite for positions during the festive season."

Oil prices were boosted by fresh EU sanctions on Russian oil last week and expectations of tighter sanctions on Iranian supplies, he added.

U.S. Treasury Secretary Janet Yellen told Reuters on Friday that the U.S. was considering further sanctions on "black fleet" tankers and would not rule out sanctions on Chinese banks for trying to cut off Russia's oil revenues and access to foreign supplies to fuel its war in Ukraine.

New U.S. sanctions on Iranian oil trading entities have pushed prices of crude sold to China to multi-year highs. The incoming Trump administration is expected to ratchet up pressure on Iran.

Source: Investing.com