Brent crude oil prices fell to $74.59 per barrel amid ongoing peace talks between the U.S. and Russia regarding Ukraine, reflecting a 3.1% decline over four sessions. U.S. West Texas Intermediate (WTI) also dropped to $70.51, marking its lowest point since December. Market analysts suggest the decline is driven by hopes for a ceasefire and potential sanctions relief. Meanwhile, U.S. energy companies have increased drilling activity for three consecutive weeks, signaling a positive trend in oil production.
Brent Crude Oil Prices Dip Amid Peace Talks
Brent crude oil futures experienced a slight decline of 20 cents, or 0.2%, settling at $74.59 per barrel as of 0112 GMT. Over the past four sessions, Brent has witnessed a 3.1% drop following announcements from U.S. President Donald Trump and his administration regarding preliminary discussions with Russia aimed at resolving the conflict in Ukraine.
WTI Hits Lowest Level Since December
Meanwhile, U.S. West Texas Intermediate (WTI) crude also saw a decrease, falling 23 cents, or 0.3%, to $70.51 a barrel. This marks a 3.8% decline over the last four sessions, with WTI hitting a low of $70.12 earlier on Monday, the lowest price since December 30. Trump’s remarks on Sunday indicated a potential meeting with Russian President Vladimir Putin to discuss the war, coinciding with planned talks between the U.S. and Russia in Saudi Arabia.
U.S. Secretary of State Marco Rubio emphasized that any meaningful negotiations would involve Ukraine and Europe, suggesting that the upcoming discussions are crucial to understanding Putin’s commitment to peace.
According to Hiroyuki Kikukawa, president of NS Trading, the market’s downturn is largely influenced by hopes for a ceasefire and the possibility of sanctions being lifted against Russia. He noted that concerns over an economic slowdown, exacerbated by trade tensions resulting from Trump’s policies, are also contributing to falling oil prices. Kikukawa predicts that WTI will fluctuate between $66 and $76 for the foreseeable future, as further reductions in oil prices could impact U.S. oil production.
Sanctions from the U.S. and the European Union have significantly reduced Russian oil exports, disrupting global maritime oil supply. Should a peace agreement be reached, the lifting of these sanctions is anticipated to enhance global energy supply.
Additionally, the threat of a global trade war looms large after Trump instructed trade and economic officials to evaluate reciprocal tariffs against nations imposing tariffs on American goods, with recommendations due by April 1.
In a positive development for U.S. energy, companies have added more oil and natural gas drilling rigs for three consecutive weeks, marking the first such streak since December 2023, according to Baker Hughes’ latest report. The total number of oil and gas rigs increased by two, reaching 588 for the week ending February 14.