Oil prices respond to diminishing prospects for quick end to war in Ukraine

Oil prices recovered on March 14 after losing more than 1% in the previous session, partly due to diminishing prospects for a quick end to the war in Ukraine, which could restore more energy supplies from russia.

Ekonomichna Pravda reported this with reference to Reuters.

Brent crude futures rose 46 cents, or 0.7%, to USD 70.34 a barrel after falling 1.5% in the previous session.

US West Texas Intermediate crude was at USD 67.03 a barrel, up 48 cents, or 0.7%, after falling 1.7% on Thursday.

The report said that on Thursday, March 13, russian president vladimir putin said that moscow supports in principle the US proposal for a ceasefire in Ukraine, but demands a number of clarifications and conditions that seem to rule out a quick end to the fighting.

“Russia’s tepid support of a 30-day ceasefire proposal with Ukraine has reduced confidence around a ceasefire in the short term,” said IG market analyst Tony Sycamore.

“The feeling is that the US will not lift sanctions until a ceasefire is agreed,” he added.

In addition, the global trade war, which has roiled financial markets and raised fears of a recession, is escalating, with US President Donald Trump threatening on Thursday to impose a 200% tariff on imports of wine, cognac and other spirits from Europe.

The International Energy Agency warned on Thursday that global oil supply could exceed demand by about 600,000 barrels per day this year due to US-led growth and weaker-than-expected global demand.

“The macroeconomic conditions underlying our oil demand forecasts have deteriorated over the past month due to escalating trade tensions between the United States and several other countries,” the IEA said.

The Trump-led trade war and demand concerns weighed on oil prices yesterday, although the prospect of a near-term reduction in russian oil on global markets provided some cushion during Friday’s trading.

“Most price forecasts were biased lower in the near term, but geopolitical tensions could still cause supply disruptions,” ANZ analysts said in a note to clients.

As the Ukrainian News agency earlier reported, oil prices fell on Thursday after a sharp rise the day before as the market weighed economic risks from Trump’s trade war.

In early March, oil prices continued to fall after reports that OPEC+ would continue its planned production increases, while markets braced for the impact of US tariffs on Canada, Mexico and China.