Oil prices were largely steady in Asian trading on Monday after weekly gains, supported by stalled U.S.-Russia peace talks over Ukraine and firm expectations the Federal Reserve will cut interest rates later this week.
As of 21:58 ET (02:58 GMT), Brent Oil Futures expiring in February gained 0.1% to $63.80 per barrel, while West Texas Intermediate (WTI) crude futures also gained 0.1% to $60.14 per barrel.
The WTI contract jumped more than 2% last week, while Brent futures gained 1%.
Peace-talk deadlock keeps supply concerns alive
The latest round of mediation involving U.S. representatives failed to produce a breakthrough between Russia and Ukraine. The negotiations remain stalled largely because of disputes over security guarantees for Kyiv, and the unresolved status of territories currently under Russian occupation.
The diplomatic impasse continues to inject a risk premium into oil markets as markets fear that continued uncertainty may prolong disruptions to Russian crude exports, or at least prevent a swift lifting of sanctions.
Gains were also aided after Ukrainian drone strikes damaged a key loading buoy at the Caspian Pipeline Consortium (CPC) terminal in Novorossiysk, forcing a temporary suspension of some oil-loading operations.
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Fed rate-cut hopes boost demand outlook
Adding to the bullish tone, markets are pricing in an 88% probability of a 25-basis-point rate cut by the Fed at its meeting slated for December 9–10. Lower interest rates would likely rejuvenate economic activity and fuel energy demand.
A softer U.S. dollar -- often accompanying rate cuts -- would also make crude cheaper for buyers using other currencies, further underpinning demand.
Still, the market remains mindful of supply-side factors as OPEC+ production remains resilient.
Source: Investing