Oil Prices Steady Amid Focus on Russia-Ukraine Conflict

Oil prices remained steady on Tuesday as production resumed at a Norwegian oil field, which had been halted on Monday, easing some pressure on the market. Operations recovered to two-thirds of capacity, providing relief amid global supply concerns.

In London, Brent crude for January delivery edged up by 0.01%, settling at $73.31 per barrel. In New York, the price of West Texas Intermediate (WTI) crude for December delivery rose 0.33%, closing at $69.39 per barrel.

Selling pressure also weighed on crude prices due to expectations that the Federal Reserve may implement a third interest rate cut in December. However, recent data indicates that progress toward bringing inflation back to the 2% target has stalled.

Adding to the uncertainty, seven Fed officials are scheduled to speak this week, potentially offering further insights into the central bank’s policy trajectory. These developments could shape market sentiment and impact broader asset classes, including oil.

Geopolitical Developments Keep Markets on Edge

The ongoing Russia-Ukraine conflict continues to weigh heavily on energy markets. On Tuesday, Russian President Vladimir Putin signed a decree expanding the potential use of nuclear weapons, coinciding with the U.S. authorization for Ukraine to use long-range missiles to strike Russian territory.

Ukraine confirmed it had used U.S.-supplied ATACMS missiles to attack the Russian border region of Bryansk, marking what Moscow described as a “new phase of the war.” Analysts believe this escalation could lead to significant disruptions in Russian energy infrastructure, which, in turn, might remove Russian crude from global markets, pushing prices higher.

Despite this geopolitical risk premium, the market was tempered by news from Iran. The International Atomic Energy Agency (IAEA) reported that Iran is taking steps to limit the growth of its highly enriched uranium stockpile, alleviating concerns about further instability in the region.

Investors remain cautious as the dual forces of geopolitical tension and production adjustments continue to shape the outlook for oil prices.