FX.co ★ Oil Rises for 4th Session

WTI crude oil futures experienced an increase of over 1.5%, reaching $64.7 per barrel on Monday, marking the highest levels in nearly three weeks. This uptrend extended a four-day rally, as traders assessed geopolitical risks alongside signals from monetary policy. The upward movement in prices was fueled by concerns over potential disruptions to Russian supply following recent Ukrainian drone attacks on energy infrastructure, including incidents at the Ust-Luga export terminal and the Novoshakhtinsk refinery. In addition, the stalemate in peace negotiations, coupled with threats from U.S. President Trump regarding new sanctions on Russia and increased tariffs on Indian imports, heightened supply worries. In parallel, Federal Reserve Chair Jerome Powell hinted at the possibility of rate cuts commencing as early as September, fostering optimism that robust U.S. economic growth might enhance oil demand. Nonetheless, broader economic challenges persist, with traders wary that subdued growth could limit long-term consumption. On the supply front, OPEC+’s strategy to reinstate some output has rekindled fears of oversupply, maintaining futures at approximately 9% below the January figures.