Oil Caps Positive Week on Geopolitical Turmoil

1601 ET – Multiple geopolitical hot spots push crude oil prices up 2.6% to $60.08 a barrel this week. It’s the second straight week that crude oil has gained, making it 3.5% that oil has risen in that time period. Conflicts in the world including an escalation by the United States toward Venezuela, which could impact demand as Venezuela is a key supplier to nations like China. But what’s also lifting crude oil is the lead-up to the Federal Reserve’s next meeting. Policy makers are expected to cut the interest rate, potentially boosting commodity demand, says Phil Flynn of Price Futures Group in a note. For the day, the WTI contract finishes up 0.7%, while Brent crude climbs 0.8% to $63.75 a barrel. (kirk.maltais@wsj.com)

Oil Higher as Market Watches Russia

0954 ET – Crude oil futures are up 0.4% to $59.95 with investors focused on news coming out of the Black Sea. “Putin doesn’t appear poised to relinquish any strong territorial demands, especially with Trump appearing to lean in his favor,” says Ritterbusch and Associates in a note. “Consequently, drone attacks on Russian oil infrastructure such as refineries, storage facilities, etc. are apt to resume.” This is providing support for oil in the short-term, but further out the firm expects that oil production elsewhere will ultimately pull crude prices back to $55-59 a barrel. “We will repeat that fundamentals always eventually win out with time,” says the firm. (kirk.maltais@wsj.com)