Oil prices rise, post weekly gains

Oil drilling rigs

Oil prices rose on Friday as markets focused on the likelihood of US monetary easing and monitored peace talks in Ukraine.

Brent crude futures for February delivery gained 0.77%, or 49 cents, to $63.75 a barrel, posting a weekly increase of 0.90%.

WTI crude for January delivery rose 0.69%, or 41 cents, to $60.08 a barrel, extending weekly gains to 2.60%.

Prices were supported by expectations that the Federal Reserve will cut interest rates at next week’s policy meeting amid concerns over labor-market weakness and signs of easing inflation pressures.

Official data released Friday showed that core personal consumption expenditures (PCE) inflation — the Fed’s preferred gauge — slowed to 2.8% in September, contrary to expectations it would remain at 2.9%.

Meanwhile, investors are closely watching developments in Ukraine peace talks, which could lead to a relaxation of Western sanctions on Russia’s energy sector if the war ends.

The Kremlin said Friday that Russia and the US had made progress in peace efforts, affirming Moscow’s readiness to continue working with the US mediation team.