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Oil Near Two-Week Highs on Fed Cut Bets as Geopolitics Recasts Supply

Talks on a G7EU maritime services ban for Russian crude raise the risk of lower exports.

Overview

  • Traders price an 84% chance of a quarter-point U.S. rate cut this week, lifting demand expectations, according to LSEG data.
  • Ukrainian strikes on Russian energy infrastructure, including the CPC Black Sea terminal, curtailed loadings and boosted physical crude prices.
  • Russian President Vladimir Putin assured India of uninterrupted fuel shipments as the country continues buying discounted Russian crude.
  • Chinese independent refiners increased purchases of sanctioned Iranian oil using new import quotas, helping to ease a supply glut.
  • Analysts say outcomes from war and peace efforts could swing supply by more than 2 million barrels per day, with oversupply risks pointing futures toward about $60 a barrel through 2026.