Oil futures eased from their highest levels in weeks as traders took profit while waiting for a meeting of the Federal Reserve later this week for indication of 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 21 cents, or 0.3%, to $74.28 a barrel by 0424 GMT after settling at their highest level since Nov. 22 on Friday.
U.S. West Texas Intermediate crude dropped 30 cents, or 0.4%, to $70.99 a barrel after reaching its highest settlement level since Nov. 7 in the previous session.
“After last week’s +6% rally, and with crude oil trading towards the top of recent range highs, we are likely seeing some light profit-taking,” 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.”
