Oil prices hold near 2-week highs 

Oil prices hovered near two-week highs on Monday as expectations of a US Federal Reserve rate cut strengthened the outlook for economic growth and energy demand, while geopolitical tensions continued to cloud Russian and Venezuelan supply. Brent crude edged up 9 cents to $63.84 a barrel by 0321 GMT, and US West Texas Intermediate (WTI) rose 8 cents to $60.16, with both benchmarks holding their strongest levels since 18 November.

Markets priced in an 84 per cent chance of a quarter-point cut at this week’s Fed meeting, even as policymaker divisions raised uncertainty over the bank’s direction.

Analysts said any breakthrough or setback in Ukraine peace talks could trigger major supply swings, with more than 2 million barrels per day potentially at stake.

Investors also weighed the impact of ongoing pressure on Russia, including discussions among the Group of Seven and the European Union over replacing the price cap with a full maritime services ban, a move that could further restrict exports.

The US has tightened its stance on Venezuela as well, adding to concerns over supply from the OPEC member. Meanwhile, Chinese independent refiners have increased purchases of sanctioned Iranian oil using new import quotas, helping ease a glut in stored crude.

Attribution: Reuters