Brent crude oil remained just below $75 per barrel on Monday, as investors closely monitored developments regarding a potential Russia-Ukraine peace deal.
Oil steadies ahead Russia-Ukraine peace talks
The possibility of a breakthrough in negotiations could ease sanctions on Russia, potentially allowing for a rise in global oil supply. US President Donald Trump hinted that he might meet with Russian President Vladimir Putin soon to discuss a resolution to the war, with initial talks between the US and Russia scheduled to take place in Saudi Arabia later this week. If these discussions lead to an agreement, Russian oil could make its way back into global markets, thereby increasing supply and potentially putting downward pressure on prices.
Further factors hitting oil prices
In addition, the Kurdistan region of Iraq indicated that it could resume oil exports as early as next month, further contributing to the global oil supply. However, despite these positive supply signals, oil prices are still under pressure due to concerns about broader economic tensions. Fears of a global trade war remain a key concern, with Trump having ordered US officials to review retaliatory tariffs on countries that impose duties on American goods. These trade-related uncertainties are contributing to caution in the markets, preventing oil prices from gaining momentum despite favorable supply news.
