The growing tensions come before a decision by the US Federal Reserve on monetary policy later on Wednesday. The central bank is expected to raise interest rates by 75 basis points, and put numbers on the “pain” it’s been warning of when it publishes new economic projections. Meanwhile China issued a giant new quota to export refined fuels, according to a local industry consultant, a move that could weigh on oil product markets.
Oil rallied after Russian President Vladimir Putin ordered a partial mobilization to hold onto occupied territories in Ukraine, an escalation that may lead to further disruption to energy supplies.
West Texas Intermediate added as much as 3.3% before trading near US$85. Russia will take necessary steps to safeguard its sovereignty and will defend territory with all available means, Putin said as he announced a call-up of reservists. The move threatened to escalate the Ukraine conflict further, with the Kremlin moving to stage sham votes on annexing regions that it holds.
