Oil prices were little changed Monday, as investors eyed developments on a potential Russia-Ukraine peace deal that could ease sanctions disrupting global supply flows. Brent crude futures edged lower 8 cents, or 0.11%, to $74.66 a barrel at 1202 GMT, and U.S. West Texas Intermediate crude fell 5 cents, or 0.07% at $70.69 a barrel.
The market also continued to watch the progress of peace talks, after U.S. President Donald Trump and his administration officials announced they had begun discussions with Russia to end the war in Ukraine. “Should sanctions relief allow it, we believe Brent crude oil prices could drop between $5 and $10/bbl if Russian barrels suddenly do not need to make a long journey to India or China, and more supply is suddenly made available,” BofA analysts said in a note.
“Global refining margins could fall as well. While margins have been normalizing since the Ukraine War started, they could go even lower under sanctions relief for diesel,” the analysts added.
Trump said on Sunday he believes he could meet very soon with Russian President Vladimir Putin to discuss ending the war in Ukraine. The U.S. and Russia are preparing for initial talks in Saudi Arabia in the coming days.
Credit: Global Banking and Finance