Oil costs fell for a fourth day on Monday on expectations a Russia-Ukraine peace deal may ease sanctions disrupting provide flows and on considerations that international tariff wars may sluggish financial progress and weaken power demand.
Brent crude futures slid 20 cents, or 0.2%, to $74.59 a barrel by 0112 GMT. Brent has slumped 3.1% prior to now 4 classes after U.S. President Donald Trump and his administration officers introduced they’d begun discussions with Russia to finish the warfare in Ukraine.
US West Texas Intermediate crude was at $70.51 a barrel, down 23 cents, or 0.3%. WTI is down 3.8% over the previous 4 classes, and earlier on Monday dropped to as little as $70.12, its lowest since December 30.
US President Donald Trump stated on Sunday he believes he may meet “very quickly” with Russian President Vladimir Putin to debate ending the warfare in Ukraine.
His feedback come as the US and Russia are getting ready for preliminary talks in Saudi Arabia within the coming days.
US Secretary of State Marco Rubio additionally stated on Sunday Ukraine and Europe can be a part of any “actual negotiations” to finish Moscow’s warfare, signalling that US talks with Russia this week have been an opportunity to see how critical Putin is about peace.
“Markets are down on the prospect of a Russia-Ukraine ceasefire and potential sanction reduction on Moscow,” stated Hiroyuki Kikukawa, president of NS Buying and selling, a unit of Nissan Securities.
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“Issues over an financial slowdown from tariff wars, pushed by Trump’s actions, are additionally weighing on costs,” he stated, predicting WTI to commerce between $66-$76 for some time as additional declines in oil costs may curb US oil manufacturing.
Sanctions by the US and European Union on Russian oil exports have curbed its shipments and disrupted seaborne oil provide flows. Lifting the sanctions within the occasion of a peace deal ought to increase international power provides.
The danger of a worldwide commerce warfare can be pressuring costs after Trump final week ordered commerce and financial officers to review reciprocal tariffs in opposition to nations that place tariffs on US items and to return their suggestions by April 1.
US power corporations final week added oil and pure gasoline rigs for a 3rd week in a row for the primary time since December 2023, power companies agency Baker Hughes (BKR.O), opens new tab stated in its carefully adopted report on Friday.
The oil and gasoline rig depend, an early indicator of future output, rose by two to 588 within the week to February 14.