Oil prices fell on Monday as investors assessed the prospects of a ceasefire between russia and Ukraine, which could lead to an increase in russian oil supplies to world markets.
This was reported by Economic Pravda with reference to Reuters.
The report said that Brent crude futures fell by 25 cents (0.4%) to USD 71.91 per barrel.
US WTI crude lost 20 cents (0.3%) and cost USD 68.08 per barrel.
Both major oil indices rose in price on Friday, closing the second week in a row with a positive result.
This came after the introduction of new US sanctions against Iran and the publication of the OPEC+ plan for production, which contributed to expectations of a supply deficit.
A US delegation will meet russian officials on Monday to discuss a ceasefire in the Black Sea and a broader end to fighting in Ukraine. It held talks with Ukrainian diplomats the day before.
“Expectations of progress in peace talks between russia and Ukraine and a possible easing of US sanctions on russian oil are weighing on prices,” said Fujitomi Securities analyst Toshitaka Tazawa.
He added that investors were holding back on big deals as they analyzed OPEC+’s future policy on production after April.
OPEC+ on Thursday unveiled a new production cut schedule for its seven member countries. This is intended to compensate for exceeding their quotas and will exceed the planned increase in production next month.
“The ceasefire talks between Ukraine and russia raise the possibility of an increase in russian exports if the conflict is resolved. At the same time, OPEC+’s intention to increase production already in April means an additional increase in supply that may be difficult to fully absorb due to demand factors,” said IG analyst Yeap Jun Rong.
OPEC+ is cutting production by 5.85 million barrels per day (about 5.7% of global supply), implementing a coordinated policy since 2022 to support the market.
On March 3, the organization confirmed that its eight members will increase production by 138,000 barrels per day each month from April, citing improving market conditions.
As Ukrainian News Agency earlier reported, oil prices rose on Thursday due to a decline in fuel inventories in the United States and a weakening dollar.
In early March, oil prices continued to fall after reports that OPEC+ would continue its planned production increase, while markets prepared for the impact of US tariffs on Canada, Mexico and China.
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