Crude climbed nearly 1% to two-week high on FED outlook and rising geopolitical tensions

Oil prices climbed to a two-week high on Friday, supported by rising expectations of a US Federal Reserve rate cut this week and heightened geopolitical risks that could constrain crude supplies from Russia and Venezuela.

Brent futures gained 49 cents, or 0.8%, to settle at $63.75 per barrel.

WTI rose 41 cents, or 0.7%, to $60.08.

The market firmed as investors parsed fresh US inflation data and reassessed the likelihood of a policy easing at the Fed’s 9–10 December meeting. Although domestic spending continued to expand in September, the pace slowed after three consecutive months of strong gains, signalling moderating momentum as a weak labour market and higher living costs weighed on demand.

Geopolitical developments added further support. Traders monitored the uncertain prospects for a ceasefire in Ukraine after a Ukrainian drone strike ignited a fire at Russia’s Temryuk port on the Azov Sea, according to local emergency officials. The terminal handles LPG, oil products, petrochemicals and agricultural bulk commodities.

At the same time, the market remained alert to the possibility of US military action in Venezuela, after President Donald Trump said Washington could begin operations “very soon” aimed at curbing drug trafficking.

Written by: Farid Muzaffar