- Oil prices seek stability above $70.00 following a sharp decline on Friday.
- A potential Russia-Ukraine peace deal could boost global oil supply, putting downward pressure on prices.
- OPEC is considering delaying its scheduled monthly supply increase.
West Texas Intermediate (WTI) futures on NYMEX rebounded to around $70.44 during Monday’s European session after hitting a seven-week low near $70.00 on Friday. The oil market remains uncertain as investors monitor developments in Russia-United States (US) negotiations aimed at ending the Ukraine war, which entered its fourth year on Monday.
Last week, the US agreed to further talks with Russia following discussions in Riyadh about a potential truce, though Ukraine and the European Union (EU) were not involved. The US government also stated that President Donald Trump is expected to meet Russian leader Vladimir Putin later this month. However, Ukrainian President Volodymyr Zelenskyy emphasized that any agreement made without Ukraine’s consent would be unacceptable.
Tensions escalated after President Trump blamed Zelenskyy for initiating the war, to which Zelenskyy responded by expressing his willingness to step down if Ukraine secures NATO membership.
Progress in Russia-US peace talks could pressure oil prices, as a resolution might lead to the lifting of US and European sanctions on Russia, increasing global seaborne oil supply. Meanwhile, investors are also awaiting OPEC’s upcoming decision on whether to proceed with its planned monthly supply hike, expected in April. Bloomberg recently reported that OPEC is considering delaying the increase.
