Oil rises on investors' expectations of Fed rate cut

Oil prices rose on Thursday on investors' expectations for the Federal Reserve to cut interest rates, while stalled Ukraine peace talks tempered expectations of a deal restoring Russian oil flows.

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Brent crude rose 81 cents, or 1.38, to $63.48 at 1:30 p.m. EDT, while US West Texas Intermediate rose 97 cents, or 1.658, to $59.92. US crude futures briefly rose more than $I a barrel earlier in the session as global shares rose, powered by expectations that a US rate cut will support the world’s largest economy and oil demand, after data showed employment is slowing.

Meanwhile, the dollar was lower and poised for its tenth straight day of losses against a basket of major currencies, making crude cheaper for buyers using other currencies and in turn, potentially boosting demand.

"I think the potential for a rate cut is overshadowing everything right now and driving crude prices up," said Phil Flynn, senior analyst with Price Futures Group.

The perception that progress on a peace plan for Ukraine was stalling also supported prices, after US President Donald Trump's representatives emerged from peace talks with the Kremlin with no specific breakthroughs on ending the war.

"War and politics, balanced against comfortable stocks, expected supply surplus, and OPEC's market-share strategy, keep Brent in the $60-$70 range for now," said PVM analysts.