Oil prices dropped for the fourth consecutive day on Monday, driven by expectations that a Russia-Ukraine peace deal could ease sanctions disrupting supply flows, as well as concerns that global tariff wars might slow economic growth and weaken energy demand.
Brent crude futures dropped 20 cents, or 0.2%, to $74.59 per barrel by early Monday, according to BT.
Brent has fallen 3.1% over the past four sessions after US President Donald Trump and his administration officials revealed they had started discussions with Russia to end the war in Ukraine.
US West Texas Intermediate crude stood at $70.51 per barrel, down 23 cents, or 0.3%. WTI has declined 3.8% over the past four sessions, hitting a low of $70.12 earlier on Monday, its weakest since December 30.
US President Donald Trump said on Sunday that he believes a meeting with Russian President Vladimir Putin to discuss ending the war in Ukraine could happen “very soon.”
His comments come as the United States and Russia prepare for preliminary talks in Saudi Arabia in the coming days.
“Markets are down on the prospect of a Russia-Ukraine ceasefire and potential sanction relief on Moscow,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.
“Concerns over an economic slowdown from tariff wars, driven by Trump’s actions, are also weighing on prices,” he said, predicting WTI to trade between US$66 to US$76 for a while as further declines in oil prices could curb US oil production.
US and EU sanctions on Russian oil exports have limited its shipments and disrupted seaborne oil supply flows. Removing these sanctions after a peace deal would enhance global energy supplies.
