Brent crude rose $1.21 (1.8%) to settle at $66.84, while U.S. West Texas Intermediate (WTI) gained $1.31 (2.1%) to close at $63.96. The rally lifted both benchmarks out of technically oversold territory for the first time in three sessions and marked Brent’s highest close since August 6.
The gains came after President Donald Trump warned of “severe consequences” if Friday’s meeting with Russian President Vladimir Putin in Alaska fails to produce a peace deal in Ukraine. While Trump has suggested Putin may be ready to negotiate, he has also threatened tougher economic measures — including secondary tariffs on Russian crude buyers such as China and India — if the war continues. Russia was the world’s second-largest oil producer in 2024, and any agreement that eases sanctions could release additional supply onto the global market.
Analysts noted that the uncertainty surrounding the talks has added a geopolitical risk premium to prices, even as some remain skeptical that Washington would pursue measures significantly disrupting oil flows.
Expectations of easier U.S. monetary policy added further support. Traders are increasingly betting the Federal Reserve will cut rates in September, potentially by as much as half a percentage point, following July inflation data showing a moderate increase in consumer prices and recent signs of labor market weakness. Lower rates reduce borrowing costs, which can spur economic growth and boost oil demand.
Elsewhere, a survey of Norwegian oil and gas producers showed investments are expected to peak this year and decline in 2026 as major projects wrap up. Norway currently produces about 2% of global oil and has been Europe’s largest pipeline gas supplier since Russia’s 2022 invasion of Ukraine.