The price of WTI crude oil rises to almost $59.00 after Ukraine attacks some of Russia's oil facilities.
Peace discussions between the United States and Russia aimed at ending the war in Ukraine did not lead to any major progress.
The Federal Reserve is likely to lower interest rates during the upcoming week.
West Texas Intermediate (WTI) futures on NYMEX rose by 0.25% to approach 59.00 during the Asian trading session on Thursday. The oil prices went up because of an attack on the Druzhba oil pipeline in Russia's central Tambov region. This pipeline sends energy products to Hungary and Slovakia. The attack has caused worries about supply, especially since Moscow's big oil companies, Rosneft and Lukoil, are already dealing with the effects of sanctions.
Even though the oil price is higher during Asian trading hours, it's still within the range it has been moving in during Wednesday's trading.
On Wednesday, oil prices went up again because the important talks between the US and Russia didn't reach an agreement.
Trump mentioned that special envoy Steve Witkoff and his son-in-law Jared Kushner had a "very good meeting" on Tuesday with Russian President Vladimir Putin. The Kremlin stated that Putin agreed to some U.S. suggestions, but the discussions didn't lead to a major breakthrough, according to CNN.
Moving forward, the main factor that will affect oil prices will be the Federal Reserve's (Fed) policy announcement next week. The US central bank is expected to lower interest rates by 25 basis points, bringing them down to a range of 3.50% to 3.75%.
Based on the CME FedWatch tool, there's an 89% chance the Fed will lower interest rates by 25 basis points, bringing them to a range of 3.50% to 3.75%, during the December policy meeting.
This is the third time in a row that the Fed has lowered interest rates. When the Fed cuts rates, it usually means they think the economy is slowing down, which can lead to lower demand for oil. This suggests that the outlook for oil demand might not be as strong as before.
Peace discussions between the United States and Russia aimed at ending the war in Ukraine did not lead to any major progress.
The Federal Reserve is likely to lower interest rates during the upcoming week.
West Texas Intermediate (WTI) futures on NYMEX rose by 0.25% to approach 59.00 during the Asian trading session on Thursday. The oil prices went up because of an attack on the Druzhba oil pipeline in Russia's central Tambov region. This pipeline sends energy products to Hungary and Slovakia. The attack has caused worries about supply, especially since Moscow's big oil companies, Rosneft and Lukoil, are already dealing with the effects of sanctions.
Even though the oil price is higher during Asian trading hours, it's still within the range it has been moving in during Wednesday's trading.
On Wednesday, oil prices went up again because the important talks between the US and Russia didn't reach an agreement.
Trump mentioned that special envoy Steve Witkoff and his son-in-law Jared Kushner had a "very good meeting" on Tuesday with Russian President Vladimir Putin. The Kremlin stated that Putin agreed to some U.S. suggestions, but the discussions didn't lead to a major breakthrough, according to CNN.
Moving forward, the main factor that will affect oil prices will be the Federal Reserve's (Fed) policy announcement next week. The US central bank is expected to lower interest rates by 25 basis points, bringing them down to a range of 3.50% to 3.75%.
Based on the CME FedWatch tool, there's an 89% chance the Fed will lower interest rates by 25 basis points, bringing them to a range of 3.50% to 3.75%, during the December policy meeting.
This is the third time in a row that the Fed has lowered interest rates. When the Fed cuts rates, it usually means they think the economy is slowing down, which can lead to lower demand for oil. This suggests that the outlook for oil demand might not be as strong as before.
