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Oil Holds Near Two-Week Highs as Traders Bet on Fed Cut and Gauge Supply Threats

Focus now shifts to a pivotal Fed decision this week, with market outlooks from EIA, IEA and OPEC to follow.

Overview

  • Brent traded near $63.8 a barrel and WTI hovered around $60 after the strongest close since Nov. 18.
  • LSEG data show an 84% probability of a quarter-point U.S. rate cut this week, with officials signaling a contentious meeting.
  • Ukrainian strikes on Russian energy assets, including the Black Sea CPC terminal, curtailed loadings and lifted physical crude prices.
  • The G7 and EU are discussing replacing the Russian price cap with a maritime services ban, while the U.S. steps up pressure on Venezuela.
  • Russia’s pledge of uninterrupted shipments to India and increased Chinese purchases of Iranian oil are reshaping flows as rising output from OPEC+ and producers such as the U.S., Brazil and Guyana keeps oversupply worries in play.