(RTTNews) – Crude oil rose on Tuesday as US efforts to end the Russia-Ukraine conflict showed positive signs of an earlier-than-expected ceasefire.
WTI crude oil for January delivery was last seen trading at $58.77 per barrel, down $0.55 (or 0.93%).
In the ongoing war between Russia and Ukraine, Russia claims to have captured the city of Pokrovsk in eastern Ukraine and Vovchansk in the northeastern Kharkiv region. However, Ukraine has not confirmed the acquisition.
Recently, Ukrainian drones attacked a Black Sea terminal owned by the Caspian Pipeline Consortium, forcing it to halt its operations.
Yesterday, CPC said it had resumed oil shipments from a mooring point at the terminal.
Another Russian-flagged tanker, Midvolga-2, was reportedly attacked by Ukraine in the Black Sea off the Turkish coast.
As it was expected that Russian retaliation could be fierce, supply-side concerns for oil increased.
Russia has been hit by sanctions imposed by the US and the West on its oil exports and is seeing a sharp decline in its petrodollar revenues.
The US has also made mediation efforts to end the Russia-Ukraine conflict.
A meeting took place in Florida between high level officials of America and Ukraine. After the discussion, the US representatives reported that the discussions were progressive, adding that some issues needed further improvement.
US Envoy to Russia Steve Witkoff is meeting with Russian President Vladimir Putin today to take the peace process to the next level.
If US efforts are successful, the eventual lifting of sanctions on Russia would allow the free flow of excess oil into the market.
In Latin America, US President Donald Trump’s recent warning that aircraft should avoid airspace in and around Venezuela has sparked concerns of a US-Venezuela war.
The administration has justified sending more than a dozen warships and more than 15,000 troops to the region as a measure to crack down on the US-wide drug trade as well as deter immigrants from entering the US illegally.
However, Venezuelan President Nicolas Maduro attributes these moves to a US desire to seize the country’s rich oil reserves.
Maduro sent an open letter to OPEC countries calling on them to intervene and save Venezuela’s oil wealth.
Venezuela has 303 billion barrels of crude oil reserves, one-fifth of the world’s global reserves. Yet, the country produces only about 1 million barrels of oil per day.
According to Rigzone, the US Energy Information Administration forecasts in its latest Short-Term Energy Outlook (STEO) that the retail price of regular gasoline and US on-highway diesel fuel will fall in 2025 and 2026, which is consistent with several recent reports that suggest slower growth in oil demand next year.
Currently, markets are expecting the final FOMC meeting of the year to take place in about a week’s time.
Recent reports said Kevin Hassett will replace current Federal Reserve Chairman Jerome Powell by mid-2026, which has been welcomed by investors as Hassett is a supporter of low interest rates.
US data so far is in favor of a rate cut, with the job market showing slow pace.
The US Dollar Index today was last seen trading at 99.46, up 0.06 (or 0.06%).
Currently, investors are considering an 87.2% chance of a quarterly rate cut at the Fed’s upcoming December 9-10 meeting.
The Fed’s decision could have an impact on the US dollar and consequently oil prices in the near term.
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