Oil prices climbed about 1 per cent on Monday as there was increased optimism about an interest rate cut in December in the United States 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 per cent to settle at $63.37 a barrel and the US West Texas Intermediate (WTI) crude gained 78 cents or 1.3 per cent to trade at $58.84 per barrel.
US Federal Reserve Governor Christopher Waller said available data indicate that the US job market remains weak enough to warrant another quarter-point cut.
Lower rates could boost economic growth and oil demand. However, many remain split on whether the US central bank will cut interest rates at its December meeting after last week’s mixed signals on job growth and unemployment.
Meanwhile, the US and Ukraine sought to narrow the gaps in a peace plan to end the Russia-Ukraine war after a proposal that Ukraine and its European allies viewed as a disadvantage.
The framework could require Ukraine to yield territory and step back from its NATO ambitions, as a signal that frozen Russian crude might re-enter global markets.
US 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.
Reuters reported that Russian state oil and gas revenue could fall in November by around 35 per cent year-on-year to less than $7 billion, owing to cheaper oil and a stronger Rouble, its official currency.
Also, the US formally designated Venezuela’s Cartel de los Soles as a foreign terrorist organization, layering additional terrorism-related sanctions on the group it has said includes President Nicolas Maduro and other high-ranking officials.
US sanctions on Venezuela, a member of the Organisation of the Petroleum Exporting Countries (OPEC), helped to support oil prices by limiting the South American country’s exports.
JPMorgan forecast Brent crude at $57 a barrel and WTI at $53 in 2027 while keeping its 2026 estimates unchanged at $58 and $54 respectively.