Oil prices declined for a fourth consecutive day on Monday, driven by expectations that a potential Russia-Ukraine peace deal could ease sanctions disrupting supply flows.
Brent crude futures dropped 20 cents, or 0.2%, to $74.59 a barrel by 0112 GMT. Over the past four sessions, Brent has fallen 3.1% following U.S. President Donald Trump’s announcement that discussions with Russia had begun to end the Ukraine conflict.
U.S. West Texas Intermediate (WTI) crude was down 23 cents, or 0.3%, at $70.51 a barrel. WTI has decreased by 3.8% over the past four sessions, with prices briefly dipping to $70.12 earlier on Monday, marking its lowest point since December 30.
President Trump stated on Sunday that he expects to meet with Russian President Vladimir Putin soon to discuss the war in Ukraine. This comes as the U.S. and Russia prepare for initial peace talks in Saudi Arabia in the coming days.
Oil prices fall on prospect of Russia-Ukraine peace talks https://t.co/3S2iorGxCj
— MarketWatch (@MarketWatch) February 14, 2025U.S. Secretary of State Marco Rubio emphasized that Ukraine and Europe would be part of any “real negotiations” to end the war, signalling that the upcoming talks could reveal Russia’s willingness for peace.
Read: US and Russian Officials to Discuss Ukraine Conflict in Saudi Arabia
“Markets are reacting to the potential Russia-Ukraine ceasefire and sanction relief on Moscow,” said Hiroyuki Kikukawa, president of NS Trading. He also noted concerns over an economic slowdown from tariff wars tied to Trump’s policies. Kikukawa forecasted WTI prices between $66 and $76, with further declines possibly curbing U.S. oil production.
Sanctions imposed by the U.S. and European Union on Russian oil exports have significantly disrupted its shipments and global oil supply flows. If these sanctions are lifted following a peace agreement, it could boost global energy supplies.
Oil prices fall on potential Ukraine peace talks https://t.co/fAlpD4NrWC pic.twitter.com/bCpsmw4iDi
— Reuters Africa (@ReutersAfrica) February 13, 2025The risk of a global trade war also weighed on oil prices. Last week, President Trump instructed U.S. commerce and economic officials to study reciprocal tariffs on countries that impose tariffs on U.S. goods, with recommendations due by April 1.
Meanwhile, U.S. energy companies added oil and natural gas rigs for the third consecutive week, marking the first increase since December 2023. On Friday, energy services firm Baker Hughes reported that the oil and gas rig count rose by two to 588 for the week ending February 14, signalling a potential increase in future production.
