Oil holds at two-week highs on expected US rate cut, geopolitical risks

Oil prices hovered at two-week highs on Monday as investors expect a Federal Reserve interest rate cut this week that will lift economic growth and energy demand while eyeing geopolitical risks that threaten oil supplies from Russia and Venezuela. Brent crude futures rose 4 cents, or 0.06%, to $63.79 a barrel by 0008 GMT, while U.S. West Texas Intermediate crude was at $60.15 a barrel, up 7 cents, or 0.12%. Both contracts closed Friday’s session at their highest levels since November 18. Markets are pricing in an 84% chance of a quarter-point cut at the Fed meeting on Tuesday and Wednesday, LSEG data show, although it is expected to be one of its most contentious in years and investors are focused on the U.S. central bank’s policy direction and internal dynamics.