Oil prices rose as investors assessed talks to end the war in Ukraine and tensions in the Middle East
Oil prices rose on Monday as investors assessed the outcome of talks between Trump and Zelenskyy about a possible deal to end the war in Ukraine, and tensions in the Middle East that could disrupt supply. Venezuela and Nigeria have been added to the list.
Brent crude futures rose 63 cents, or 1.04%, to $61.27 a barrel at 04:43 GMT, while WTI crude rose 58 cents, or 1.02%, to $57.32.
Both benchmark prices had fallen more than 2% on Friday as investors assessed the possibility of a peace deal between Ukraine and Russia ahead of talks between Volodymyr Zelenskyy and U.S. President Donald Trump this weekend.
U.S. President Donald Trump said on Sunday that he and Zelenskyy were closer to an agreement to end the war in Ukraine, while acknowledging that the fate of the disputed Donbas region remains a major unresolved issue.
The two leaders spoke at a joint press conference late Sunday afternoon after meeting. Trump said it would become clear "within a few weeks" whether negotiations to end the war would succeed.
In fact, it's fair to say that for now, peace talks have failed to reach an agreement on territorial issues, and therefore, the Russia-Ukraine peace deal remains stalled without a swift breakthrough.
Strangely enough, Trump and Zelenskyy are holding such a meeting in a setting where Russia is not present. Should we say that this meeting is aimed at persuading Ukraine?
Russia and Ukraine continued to attack each other's energy infrastructure over the weekend. This and other geopolitical tensions are helping to keep prices high.
The Middle East also remains unstable. Saudi Arabia's airstrikes in Yemen and Iran's claim of being in a "full-scale war" with the US, Europe, and Israel are triggering concerns about potential supply disruptions in the market.
Attention should also be paid to the potential consequences of US sanctions against Venezuelan oil shipments and the US military offensive against ISIS targets in Nigeria. Nigeria produces approximately 1.5 million barrels of oil per day.
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