Oil prices near 2-week high as investors eye US interest rate cut

Oil prices hovered at a two-week high on Monday, December 8, 2025, as investors expect a likely United States Federal Reserve interest rate cut this week to lift economic growth and energy demand.

Brent crude futures fell by 25 cents, or 0.4%, to $63.50 a barrel by 0922 GMT, while U.S. West Texas Intermediate crude was at $59.83, also down 25 cents, or 0.4%.

Both contracts closed Friday’s trading session at their highest levels since November 18.

An oil market analyst at PVM, Tamas Varga, said “the market is in a wait-and-see mode” ahead of more news on U.S. interest rates and the Ukraine peace talks.

“If there’s any kind of agreement reached in near future on Ukraine, then Russian oil exports should increase and put downward pressure on oil prices,” Varga added.

Markets are pricing in an 84% chance of a quarter-point cut at the Fed meeting on Tuesday and Wednesday, LSEG data showed.

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However, board member comments indicate the meeting is likely to be one of the most divisive in years, intensifying investor focus on the bank’s policy direction and internal dynamics.

In Europe, progress on Ukraine peace talks remains slow, with disputes over security guarantees for Kyiv and the status of Russian-occupied territory still unresolved.

United States and Russian officials also have differing views on the peace proposal tabled by the administration of U.S. President Donald Trump, Reuters reported.

“The various potential outcomes from Trump’s latest push to end the war could release a swing in oil supply of more than 2 million barrels per day,” ANZ analysts said in a client note.

The Star