Oil prices ended higher on Tuesday after a volatile session, with traders weighing the impact of Western sanctions on Russian oil flows alongside fresh signals on U.S. monetary policy. Brent settled up $0.69 at $64.89, while WTI added $0.83 to close at $60.74. Prices briefly jumped more than a dollar in afternoon trading after President Trump said the administration has begun interviewing candidates for the next Federal Reserve chair, a move that markets interpreted as a sign that interest rates could head lower. Expectations for easier policy helped lift risk appetite, supporting crude.
Sanctions remained a major focus as the U.S. Treasury said measures imposed last month on Russia’s top producers are already squeezing revenues and are expected to slow export volumes over time. Traders continued to assess how quickly Russian flows might be disrupted, especially with lawmakers discussing legislation that could penalize any country still doing business with Moscow. The brief shutdown at Russia’s Novorossiysk export hub — which handles roughly 2% of global supply — also remained in the background after loadings resumed this weekend following a Ukrainian strike.
Still, the broader market outlook is shaped by expectations of a sizeable surplus in 2026. Several banks have warned that rising global production could keep pressure on prices in the months ahead, even if sanctions take a heavier toll on Russian exports. Investors were also watching for weekly U.S. inventory data due later Tuesday, which will provide the next signal for near-term demand trends.