Oil price movements at the beginning of the week
Oil prices witnessed a divergence in trading on Monday, with Brent crude falling near the level of USD 65 per barrel, while WTI crude fell to around USD 61.50, before prices rebounded again later in the day.
The impact of US-Russian talks on oil markets
Although talks between US President Donald Trump and his Russian counterpart Vladimir Putin failed to make tangible progress towards a ceasefire in Ukraine, the tone of the meeting eased fears of tougher sanctions on the Russian energy sector.
Trump announced the postponement of additional tariffs on China due to its purchase of oil from Russia, which removed one of the factors of pressure on prices.
Watch the results of Trump's meeting with European and Ukrainian leaders
Investors are turning their attention to the meeting scheduled for later today between Trump and Ukrainian President Volodymyr Zelensky, which will also include European Commission President Ursula von der Leyen, French President Emmanuel Macron, and NATO Secretary General Mark Rutte.
Trump stressed that he would continue to put pressure on Zelensky to reach a quick settlement, especially after Russia demanded that Ukraine cede territory as a condition for ending the war.
Any new developments in these negotiations could have a direct impact on oil prices, both in terms of geopolitical risks and possible sanctions trajectories.
Expectations of volatile price movements
Oil remains under the influence of geopolitical factors and global interest rates, as analysts expect continued volatility in the coming period.
While political risks are easing some of the upward pressure, slowing global economic growth may limit price rises.
While the markets are focused on the developments of the Ukrainian crisis, any surprises in the upcoming talks may lead to sudden movements in crude prices, which requires careful monitoring of those interested in the points and the energy sector.
