Oil prices rose on Russian supply risks and stronger US demand

Oil prices edged higher on Wednesday, supported by persistent concerns over Russian supply disruptions and signs of stronger US fuel demand. The gains extended earlier advances, with traders betting that sanctions on Moscow will remain in place amid stalled peace efforts in Ukraine.

Brent crude futures settled 80 cents, or 1.2%, higher at $66.25 a barrel. 

WTI rose 82 cents, or 1.3%, to $62.55. Both benchmarks closed at their highest levels in a week.

Market sentiment was buoyed by indications that negotiations between Russia and Ukraine have stalled, dampening prospects for any near-term easing of sanctions. Price support also came from expectations of further monetary easing in the United States, adding to the bullish tone. Minutes from the Federal Reserve’s September meeting highlighted rising concern about labour market weakness, reinforcing expectations of a 25-basis-point rate cut at the upcoming October 28–29 meeting. Lower interest rates are typically supportive of economic activity and fuel consumption.

Oil has gained around 3% so far this week, underpinned by OPEC+’s decision to raise its November output target by a modest 137,000 barrels per day — smaller than many had anticipated. The move underscored the group’s cautious stance as it seeks to balance supply growth with the risk of oversupply in a fragile global market.

Written: Aiman Haikal