Oil prices rose as markets analyzed potential Russian supply cuts and the possibility of a Fed interest rate decision
Oil prices rose on Tuesday, extending gains from the previous session, as markets assessed Russia's supply risks following Ukraine's drone attacks on Russian refineries and anticipated a US interest rate decision.
On Monday, Brent crude rose 45 cents to $67.44, while WTI rose 61 cents to $63.30.
Brent crude futures rose 8 cents to $67.52 a barrel at 06:32 GMT, while WTI closed 11 cents higher at $63.41.
Talks to end the conflict between Ukraine and Russia have stalled. With support from the West, Ukraine has intensified its attacks on Russia's energy infrastructure in an attempt to weaken Moscow's financial viability.
The attack on Russia's Primorsk export terminal aims to limit Russia's ability to sell its oil abroad and impact export markets.
More importantly, the attack is intended to disrupt international oil markets and has the potential to put upward pressure on oil prices.
US Treasury Secretary Scott Bessent said on Monday that the government will not impose additional tariffs on Chinese goods unless European countries impose their own tariffs on China and India. Being alone in this area is not in the US's interest.
Also on investors' radars are the bank's expectation of a rate cut and the upcoming Fed meeting on September 16-17.
While lower borrowing costs generally boost fuel demand, analysts have remained cautious about the overall health of the US economy.
The recovery in oil prices since the September 5 low has been tempered by the decline in US demand following further data suggesting a weak consumer sentiment in the near future.
Markets were also weighing the possibility of a decline in US crude oil inventories last week, with official data expected at 2:30 PM GMT on Wednesday.
A note said US crude oil inventories likely fell by 6.4 million barrels in the week ending September 12, following a 3.9 million barrel increase the previous week.
A poll released on Monday showed analysts expect US crude oil and gasoline inventories to fall last week, while distillate oil inventories are likely to rise.
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