Oil prices edged higher on Tuesday as concerns grew that peace talks between Russia and Ukraine could falter after Moscow accused Kyiv of attacking President Vladimir Putin's residence, while expectations of interest rate cuts by the US Federal Reserve continued to support markets.
International benchmark Brent crude traded at $61.39 per barrel at 10.38 a.m. local time (0738 GMT), up 0.3% from the previous close of $61.23.
US benchmark West Texas Intermediate (WTI) also increased by 0.3% to $57.94, compared to $57.74 in the prior session.
Russian President Vladimir Putin told US President Donald Trump during a phone call that Ukraine's drone attack on the presidential residence in his country's northwestern Novgorod region "will not go unanswered," his aide said on Monday.
In remarks to journalists, Russian presidential aide Yuri Ushakov said Putin and Trump held another phone call, during which the latter briefed his counterpart on his meeting with Ukrainian President Volodymyr Zelenskyy in Florida a day prior.
Earlier, Russian Foreign Minister Sergey Lavrov claimed that Ukraine launched a drone attack on Putin’s residence in the northwestern Novgorod region using 91 long-range strike drones.
Lavrov said Moscow will revise its negotiating position amid ongoing talks for peace in Ukraine due to the attack, but added: "We do not intend to withdraw from the negotiating process with the United States."
Ukraine's President Zelenskyy immediately denied Lavrov's claims in a statement on US social media company X, arguing the accusations seek to "undermine all achievements of our shared diplomatic efforts with President Trump's team."
Russia's warning of retaliation and rising uncertainty over negotiations have heightened supply concerns tied to the Russia-Ukraine conflict, lending additional support to oil prices.
Meanwhile, markets focused on minutes from the Fed's latest policy meeting. The central bank has cut its benchmark interest rate by a total of 75 basis points this year, lowering it to a range of 3.50% to 3.75%, including quarter-point reductions in September, October and December.
Markets expect the Fed to deliver two additional quarter-point cuts in March and July, though uncertainty persists over who will succeed Chair Jerome Powell and the future direction of US monetary policy.
While expectations of further rate cuts continue to support oil prices, concerns about political pressure on the Federal Reserve’s independence are tempering sentiment and limiting gains.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr
