The growing tensions come before a decision by the US Federal Reserve on monetary policy later on Wednesday. The central bank is expected to raise interest rates by 75 basis points, and put numbers on the “pain” it’s been warning of when it publishes new economic projections. Meanwhile China issued a giant new quota to export refined fuels, according to a local industry consultant, a move that could weigh on oil product markets.
Putin’s speech “should have more of an effect on oil sentiment as it nudges attention back to the pending implementation of sanctions, Russia’s responses to any price cap and puts the spotlight back on the distillate markets,” said Paul Horsnell, head of commodities research at Standard Chartered. “It creates a few ripples and shores up the downside a bit, but does not in itself create a fast track back to US$130.”
Prices pare some of Wednesday's earlier gains
See also: Global oil surplus to persist in 2026 as demand sags, IEA says
Crude is on track for its first quarterly loss in more than two years as concerns over a global economic slowdown weigh on the outlook for energy demand. The Fed decision will be followed by other central banks from Europe to Asia, which are also expected to increase borrowing costs.
Elsewhere, the industry-funded American Petroleum Institute reported US crude stockpiles rose more than 1 million barrels last week, according to people familiar with the figures. Inventories at the key storage hub at Cushing, Oklahoma, and nationwide gasoline supplies both expanded.
