Oil prices hold steady as Russia-Ukraine talks take center stage
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Crude Markets Await Clarity on Peace Negotiations
Oil prices are holding flat as traders monitor progress on Russia-Ukraine peace talks, with Brent at $74.73 and WTI at $70.67. The potential for a negotiated resolution has weighed on bullish sentiment, as a peace deal could bring more Russian oil back into global supply chains, adding downward pressure on crude prices. U.S. President Donald Trump hinted at an upcoming meeting with Russian President Vladimir Putin, reinforcing expectations that initial discussions in Saudi Arabia could set the stage for broader negotiations. While geopolitical risk typically supports oil prices, a de-escalation in the Russia-Ukraine conflict would likely lead to an easing of Western sanctions, allowing Russian crude to flow more freely into global markets.
Oil Demand Outlook Remains Stable Despite Supply Uncertainty
Despite bearish supply-side risks, oil prices have found short-term support from stable demand expectations. Analysts suggest that global consumption remains resilient, preventing a sharper sell-off. Meanwhile, Trump’s proposed reciprocal tariffs continue to loom over global trade, adding uncertainty to energy demand forecasts. If a full-scale trade war materializes, it could disrupt industrial activity and weigh on global oil consumption, further pressuring prices.
U.S. Oil Rig Count Sees Modest Increase
Adding to the supply-side picture, Baker Hughes reported a third consecutive weekly increase in U.S. oil and gas rigs, with the count rising by two to 588. This modest uptick signals potential for increased domestic production, which could offset any short-term tightening in global supply.
Market Outlook: Key Levels to Watch
WTI faces resistance at $72.50, with a breakout needed for further upside. Brent crude must hold above $74.00 to prevent a deeper retracement toward $72.00 support. Short-term sentiment remains driven by geopolitical headlines, with any concrete progress in Russia-Ukraine peace talks likely to push oil prices lower.
Oil prices are holding flat as traders monitor progress on Russia-Ukraine peace talks, with Brent at $74.73 and WTI at $70.67. The potential for a negotiated resolution has weighed on bullish sentiment, as a peace deal could bring more Russian oil back into global supply chains, adding downward pressure on crude prices. U.S. President Donald Trump hinted at an upcoming meeting with Russian President Vladimir Putin, reinforcing expectations that initial discussions in Saudi Arabia could set the stage for broader negotiations. While geopolitical risk typically supports oil prices, a de-escalation in the Russia-Ukraine conflict would likely lead to an easing of Western sanctions, allowing Russian crude to flow more freely into global markets.
Oil Demand Outlook Remains Stable Despite Supply Uncertainty
Despite bearish supply-side risks, oil prices have found short-term support from stable demand expectations. Analysts suggest that global consumption remains resilient, preventing a sharper sell-off. Meanwhile, Trump’s proposed reciprocal tariffs continue to loom over global trade, adding uncertainty to energy demand forecasts. If a full-scale trade war materializes, it could disrupt industrial activity and weigh on global oil consumption, further pressuring prices.
U.S. Oil Rig Count Sees Modest Increase
Adding to the supply-side picture, Baker Hughes reported a third consecutive weekly increase in U.S. oil and gas rigs, with the count rising by two to 588. This modest uptick signals potential for increased domestic production, which could offset any short-term tightening in global supply.
Market Outlook: Key Levels to Watch
WTI faces resistance at $72.50, with a breakout needed for further upside. Brent crude must hold above $74.00 to prevent a deeper retracement toward $72.00 support. Short-term sentiment remains driven by geopolitical headlines, with any concrete progress in Russia-Ukraine peace talks likely to push oil prices lower.