Oil prices climbed about 2% to a one-week high on Thursday after U.S. President Donald Trump warned of “severe consequences” if his talks with Russian President Vladimir Putin on Ukraine fail, and on optimism that a likely U.S. interest rate cut next month could spur oil demand.

Central banks, like the U.S. Federal Reserve, use interest rates to control inflation. Lower rates reduce consumer borrowing costs and can boost economic growth and demand for oil.

Brent crude futures rose $1.21, or 1.8%, to settle at $66.84 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.31, or 2.1%, to settle at $63.96.

Those price gains pushed both crude benchmarks out of technically oversold territory for the first time in three days, and led Brent to its highest close since August 6.

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