Oil prices remained mostly stable during Asian trading on Friday, following gains from the previous session, as stalled diplomatic efforts regarding the Ukraine war and strong expectations of a U.S. Federal Reserve rate cut influenced the market. Brent Oil Futures for February declined by 0.2% to $63.15 per barrel, while West Texas Intermediate (WTI) crude futures fell by 0.3% to $59.30 per barrel.
Despite these slight dips, both contracts had increased nearly 1% the day before, with WTI oil prices on track for a 1.5% weekly gain. The lack of progress in U.S.-Russia talks concerning a Ukraine ceasefire has maintained a risk premium in the market, dampening hopes for the easing of energy sanctions on Russian crude.
Analysts pointed out that this situation reinforces expectations of ongoing supply disruptions, particularly following recent Ukrainian strikes on Russian energy infrastructure. Additional support for oil prices stems from anticipations that the Federal Reserve might cut interest rates during the upcoming policy meeting, with futures suggesting a significant likelihood of a 25-basis-point reduction as investors adjust their outlook amid softening economic momentum.
