Oil prices hovered near a two-week high on Monday, as investors anticipated a U.S. interest rate cut this week that would support economic growth and energy demand, while also monitoring geopolitical risks threatening oil supplies from Russia and Venezuela.
اضافة اعلان
By 00:08 GMT, Brent crude futures rose four cents, or 0.06%, to $63.79 a barrel, while U.S. West Texas Intermediate (WTI) crude increased seven cents, or 0.12%, to $60.15 a barrel.
Both benchmarks ended Friday’s session at their highest levels since November 18.
Data from the London Stock Exchange Group (LSEG) shows that markets now assign an 84% probability to a quarter-point U.S. rate cut at the Federal Reserve meeting on Tuesday and Wednesday—expected to be one of the most contentious in years—as investors focus on the central bank’s policy direction and underlying drivers.
In Europe, progress in Ukraine peace talks remains slow amid unresolved disputes over Kyiv’s security guarantees and the status of territories occupied by Russia.
ANZ analysts wrote in a note: “The outcome of the current negotiations could have significant implications for the oil market.”
They added: “Potential scenarios arising from Trump’s latest efforts to end the war could swing oil supplies by more than two million barrels per day.”
Meanwhile, the G7 and the European Union are holding discussions on replacing the price cap on Russian oil exports with a full ban on maritime services, according to sources cited by Reuters—an approach that could constrain supplies from the world’s second-largest producer.
The United States has also intensified pressure on Venezuela, an OPEC member, including strikes on alleged drug-smuggling boats and threats of military action to remove President Nicolás Maduro’s government.
According to traders and analysts, independent Chinese refiners have ramped up purchases of U.S.-sanctioned Iranian oil from onshore storage using newly allocated import quotas, helping to ease the oversupply.
Reuters
