Doha: Oil prices climbed by nearly 1% Thursday following US President Donald Trump’s warning of severe consequences should his talks with Russian President Vladimir Putin fail, alongside growing expectations that a US interest rate cut next month could boost oil demand. Brent crude futures rose by 87 cents, or 1.3%, to $66.50 per barrel. U.S. West Texas Intermediate (WTI) crude futures increased by 88 cents, or 1.4%, to $63.53 per barrel.

According to Qatar News Agency, the recent geopolitical tensions between the US and Russia have played a significant role in the rise of oil prices. The potential for strained relations between these two significant global powers has led to uncertainties in the market, prompting traders to adjust their positions accordingly. Additionally, the prospect of a US interest rate cut has created optimism about increased economic activity, which could lead to higher oil consumption.

The combination of these factors has contributed to the upward movement in oil prices, reflecting market participants’ reactions to the evolving political and economic landscape. Traders are closely monitoring developments in US-Russia relations, as well as economic indicators that may influence the Federal Reserve’s decision on interest rates in the coming month.