Oil prices settle up 1% on bets Fed will cut US rates and doubts about Ukraine peace
Oil prices climbed about 1% on Monday on increased bets of a U.S. interest rate cut in December and mounting doubts about whether Russia will get a peace deal with Ukraine that will boost Moscow's oil exports.
Brent futures rose 81 cents, or 1.3%, to settle at $63.37 a barrel. West Texas Intermediate (WTI) crude gained 78 cents, or 1.3%, to settle at $58.84.
On Friday, both crude benchmarks closed at their lowest levels since October 21.
The U.S. and Ukraine sought to narrow the gaps in a peace plan to end the Russia-Ukraine war after a U.S. proposal that Kyiv and its European allies viewed as a Kremlin wish list.
Recent price weakness was driven mainly by reported progress in Ukraine–Russia peace negotiations, analysts at energy advisory firm Ritterbusch and Associates said in a note.
U.S. sanctions on Russian oil companies Rosneft and Lukoil which took effect on Friday, have caused friction that would normally boost prices, but the market is preoccupied by the peace talks, said Jorge Montepeque, managing director at Onyx Capital.
Russian state oil and gas revenue could fall in November by around 35% year-on-year to 520 billion roubles ($6.59 billion), owing to cheaper oil and a stronger rouble, Reuters calculations showed on Monday.
European Council President Antonio Costa hailed the "new momentum" in negotiations to end the war in Ukraine and pledged that the European Union will keep supporting Ukraine.
Source : Reuters.com
