Oil prices showed little change as investors sought clarity on Russia-Ukraine peace talks
Oil prices showed little change on Tuesday after rising more than 2% in the previous session, as investors sought clarity on Russia-Ukraine peace talks.
February Brent crude futures, which expire on Tuesday, traded down 2 cents at $61.92 a barrel as of 03:14 GMT. The more actively traded March contract was down 5 cents at $61.44. WTI fell 5 cents to $58.03.
Brent and WTI benchmarks had risen more than 2% in the previous session, fueling fears of supply disruptions after Moscow accused Kyiv of targeting Putin's residence.
Kyiv rejected Moscow's accusation as baseless and an attempt to undermine peace talks. Following a phone call with Putin, Trump said he was angered by the details of the alleged attack.
These news reports undermine the belief that a peace deal could be close.
By the way, Trump reiterated his conviction that a peace agreement might be imminent. But subsequent increased geopolitical tensions could put downward pressure on oil prices.
In this situation, markets may become sensitive to the fact that an agreement is very difficult.
Trump's statement that the US could support another major strike against Iran if Tehran begins rebuilding its ballistic missile or nuclear weapons programs worried the investors about Middle East distruptions.
Trump also warned the Palestinian militant group Hamas that it would face serious consequences if it did not disarm, and added that he wanted to move to the second phase of the Israeli-Hamas ceasefire agreement reached in October after two years of fighting in Gaza.
Analysts say that despite growing fears of potential supply disruptions due to geopolitical tensions, the perception of oversupply in the global market persists and could limit prices.
Due to the increasing oil surplus, prices are likely to trend downwards in the first quarter of 2026.
Given the conflicting circumstances—peace efforts, ongoing concerns about oversupply, and simmering geopolitical tensions—WTI is expected to continue trading in the $55-60 range in the near term.
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