Oil Climbs After Plummeting Last Week: Keystone Pipeline, Fed Meet in Focus

By Malvika Gurung

Investing.com -- Oil prices found some support, as crude Futures surged over a percent in early Asian trade on Monday after languishing to lows not witnessed since Dec 2021 and recording their steepest weekly losses in months last week.

Brent Futures rose 0.75% to $76.67/barrel and WTI Futures jumped 1% to $71.73/barrel at the time of writing, after surging over 1% in the early session as a key Canada-U.S. oil pipeline continued to remain closed without any indications on resumption in operations.

In the latest update, the Canadian natural gas company TC Energy said that it had not yet determined the reason for last week’s Keystone oil pipeline leak in the US. The Keystone line is a vital route shipping heavy Canadian crude from Alberta to refiners in the U.S. Midwest and the Gulf Coast.

Further, Moscow has threatened to cut production following a Western price cap on Russian oil exports, with Putin saying that Russia will keep from selling oil to any country that agrees to impose a price cap set by the G7 nations.

Analysts believe that the price caps and sanctions will have a limited impact on crude markets.

All eyes are now set on the US CPI print for Nov and the FOMC’s two-day final meeting for the ongoing calendar year further in the week.