Crude gained as traders eyed US-Russia Summit, September Fed cut
Oil prices climbed to a one-week high on Thursday, buoyed by geopolitical tensions ahead of a high-stakes meeting between US and Russia, as well as growing expectations of a US interest rate cut
Oil prices climbed to a one-week high on Thursday, buoyed by geopolitical tensions ahead of a high-stakes meeting between US and Russia, as well as growing expectations of a US interest rate cut that could bolster demand.
Brent crude futures rose $1.21, or 1.8%, to settle at $66.84 a barrel.
West Texas Intermediate gained $1.31, or 2.1%, to close at $63.96.
Market is watching closely to see whether Friday’s summit in Alaska will prompt Washington to ease or tighten sanctions on Russia, a key OPEC+ producer. The US warned of “very severe consequences” if Moscow failed to agree to a ceasefire in Ukraine, following a call with European leaders. The possible stalemate in the peace talks is keeping a bullish risk premium in play, as the prospect of tighter sanctions threatens to curb access to Russian barrels.
Expectations for looser monetary policy also supported crude, with traders largely convinced the Federal Reserve will lower rates in September after US consumer prices posted only a moderate rise in July.
Written: Farid Muzaffar