Oil prices stabilize as market awaits clarity on Russian-Ukrainian negotiations

Global oil markets saw prices stabilize with little change during trading today, with a slight downward bias, as investors awaited developments in the peace negotiations between Ukraine and Russia.

Reasons for yesterday's decline

The decline recorded in the previous session was due to news that Ukraine was moving towards signing a peace agreement drafted by the United States, raising expectations of a possible breakthrough in the ongoing geopolitical crisis.

Prices ended the previous session down by more than 1% for both benchmark crudes.

Continued pressure on energy markets

Positive signals from both the US and Ukraine regarding the anticipated peace agreement continue to put pressure on energy markets, as the possibility of reaching a political solution is a mitigating factor for the risk of supply disruptions.

Uncertainty surrounding the Russian position

Despite these developments, uncertainty still surrounds Russia's stance on the current plan, maintaining a degree of uncertainty in the markets and prompting traders to be cautious in their investment decisions.

Potential Impact on Oil Supply

Any peace agreement is expected to lead to the lifting of US sanctions on Russian crude oil, potentially opening the door for a greater influx of barrels into the global market at a time when supply is already in surplus.

On the other hand, data released last week showed a 1.9 million barrel drop in US crude oil inventories, marking the first decline after three consecutive weeks of increases. This could provide support for prices.

Oil market participants remain on tenterhooks awaiting further developments regarding the course of negotiations, which will largely determine the future direction of global crude oil prices.