Oil rises on U.S. rate cut expectations

Brent crude settled up 59 cents, or 0.94%, to $63.26

Oil prices settled up on Thursday on investors’ expectations for the U.S. central bank to cut interest rates, while stalled Ukraine peace talks tempered expectations of a deal restoring Russian oil flows.

Brent crude settled up 59 cents, or 0.94%, to $63.26. U.S. West Texas Intermediate settled up 72 cents, or 1.22%, to $59.67.

U.S. crude futures briefly rose more than $1 a barrel earlier in the session as g, powered by expectations that a rate cut will support the country’s economy and oil demand, after data showed employment is slowing.

The dollar was lower, poised for its 10th straight day of losses against a range of other currencies, making crude cheaper for buyers using other currencies.

I think the potential for a rate cut is overshadowing everything right now and driving crude prices up, said Phil Flynn, senior analyst with Price Futures Group.

Escalating tensions between the U.S. and Venezuela were also supporting prices, analysts said, on concerns of a drop in crude supplies from the South American country.

Benchmark crude oil prices could be impacted significantly by escalating military tensions between the U.S. and Venezuela, Rystad Energy analysts said in a note on Thursday, noting that U.S. President Donald Trump’s administration is ratcheting up pressure on Venezuelan President Nicolás Maduro, “signalling the possibility of an incursion.”

U.S. crude and fuel inventories increased last week as refining activity rose, the Energy Information Administration said on Wednesday.

Crude inventories increased by 574,000 barrels to 427.5 million barrels in the week ended November 28, the EIA said.

Fitch Ratings on Thursday cut its 2025-2027 oil price assumptions to reflect market oversupply and production growth that is expected to outstrip demand.