(Bloomberg) -- Crude extended a weekly drop as traders weighed the outlook for slower easing by the Federal Reserve and Donald Trump’s tariff threat on EU countries unless they buy more US oil and gas.

Brent futures fell toward $72 a barrel, down by about 3% for the week. Markets globally continue to assess what the Fed’s indication of fewer rate cuts than previously expected will mean for the economy in 2025, though pared some earlier declines as the dollar’s recent run of gains eased.

Meanwhile, the US president-elect said he wants the European Union to conduct large-scale purchases of American oil and gas in a post on Truth Social. He threatened tariffs if not, adding to wider economic concerns as the government in Washington risks an imminent shutdown over funding plans.

Crude has been effectively rangebound since the middle of October and prices are on course for their smallest annual trading band since 2019. Prices have been buffeted by weak Chinese demand and concerns over increased production, mainly from the Americas, as well as the prospect of tougher sanctions on Iran and Russia.

“The combination of higher interest rates, a stronger dollar, and weak risk appetite is weighing on oil prices,” said Arne Lohmann Rasmussen, chief analyst at A/S Global Risk Management. “The latest political developments and new signals from the central bank may further weaken risk appetite.”

Group of Seven nations are exploring ways to toughen sanctions on Russian oil, according to people familiar with the matter. Although there’s no consensus yet on next steps, options under consideration range from an outright ban to lowering the price cap to about $40 a barrel from the current $60, they said.

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