TOKYO/SINGAPORE: Oil prices climbed on Thursday as investors weighed what impact the US-Russia summit on Ukraine on Friday might have on Russian crude flows, with secondary sanctions looming over Moscow’s customers, while a rising supply outlook capped gains.
Brent crude futures rose 45 cents, or 0.7 percent, to $66.08 a barrel at 8:31 a.m. Saudi time, while US West Texas Intermediate crude futures gained 44 cents, also up 0.7 percent, to $63.09.
Both contracts hit their lowest in two months on Wednesday after bearish supply guidance from the US government and the International Energy Agency.
Trump on Wednesday threatened “severe consequences” if Putin does not agree to peace in Ukraine. Trump did not specify what the consequences could be, but he has warned of economic sanctions if the meeting in Alaska on Friday proves fruitless.
“The uncertainty of US-Russia peace talks continues to add a bullish risk premium given Russian oil buyers could face more economic pressure,” Rystad Energy said in a client note.
