Oil prices edged higher on Tuesday as markets reacted to growing concerns over Russia oil sanctions and uncertainty surrounding the next U.S. Federal Reserve chair. The session remained volatile, but geopolitical tension and monetary policy speculation lifted overall sentiment.
Brent crude settled at $64.89 per barrel, while WTI closed at $60.74, recovering after a brief spike triggered by Donald Trump’s comments about interviewing candidates to replace the current Fed chair. Analysts noted that expectations of potential rate cuts boosted optimism across energy markets.
How Russia Oil Sanctions Are Impacting Global Supply
U.S. Treasury officials reported that recent sanctions targeting Rosneft and Lukoil are already tightening Russia’s oil revenues. These restrictions could further reduce Moscow’s export capacity, adding new pressure to the global supply outlook.
Traders also kept a close watch on developments at Russia’s Novorossiysk port, a major export hub. Loadings resumed after a missile-drone strike temporarily halted operations. The disruption affected nearly 2% of global oil supply, underscoring how fragile the current geopolitical environment is.
Inventory Data Highlights Market Imbalance
Despite the geopolitical risk, U.S. crude stockpiles continue to rise. Fresh API data showed inventories climbing by 4.45 million barrels, signaling an expanding supply surplus. This growing inventory contrasts with the supportive effect of Russia oil sanctions, creating a split sentiment in the market.
Analysts say the combination of geopolitical tension and shifting monetary policy expectations will continue to shape crude price direction in the coming weeks.
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