Oil prices traded in a tight range on Monday amid rising hopes for a Russia-Ukraine peace deal, while concerns over global trade tensions lingered.
By 3:35 pm AEDT (4:35 am GMT) Brent crude futures were up $0.07 or 0.1% to US$74.81 per barrel, while U.S. West Texas Intermediate (WTI) crude for April was flat at $70.73 per barrel., having earlier touched a near seven-week low of $70.12.
The moves follow comments from United States President Donald Trump, who stated on Sunday that he expects to meet with Russian President Vladimir Putin “very soon” to discuss a resolution to the Ukraine conflict.
Concerns over a potential economic slowdown driven by Trump’s proposed reciprocal tariffs are also weighing on crude prices. Last week, the U.S. president ordered officials to review trade tariffs imposed on American goods and provide recommendations by April 1, fueling fears of escalating trade disputes.
ANZ analysts commented in a note to clients, “Geopolitical events are likely to keep the oil market volatile. The recent package of U.S. sanctions against Russia raises the risk of disruptions in oil supply in the short term."
Meanwhile, U.S. energy firms increased oil and gas rig counts for a third consecutive week, according to Baker Hughes. The rig count, an early indicator of future production, rose by two to 588 in the week ending 14 February.
