Oil prices fell on Wednesday after Russian President Vladimir Putin agreed to United States President Donald Trump’s proposal to suspend attacks on Ukraine’s energy facilities.
By 3:15 pm AEDT (4:15 am GMT) Brent crude futures slipped $0.20 or 0.3% to US$70.36 per barrel, while U.S. West Texas Intermediate (WTI) crude fell $0.21 or 0.3% to $66.69.
The decline came after Putin agreed to pause strikes on Ukraine’s energy sector, though he stopped short of endorsing Trump’s request for a full 30-day ceasefire.
Meanwhile, Goldman Sachs analysts noted that escalating tariffs and high spare capacity pose downside risks to their oil price forecasts.
Despite the dip, oil prices remained supported by ongoing instability in the Middle East.
ANZ analysts commented in a note to clients: "Earlier in the session, crude oil was pushed higher as the escalating tensions in the Middle East renewed risks to supply in the region. Israel said that it won’t stop launching attacks on Hamas until all hostages are freed.
"The U.S. also continues to pile further pressure on Iran. It has launched attacks on Houthi rebels after Trump said the U.S. will view maritime attacks as equivalent to direct affronts by Tehran. However, concerns over the global economy are keeping the gains from any geopolitical risks limited."
Trump reaffirmed his administration’s commitment to military action against Yemen’s Houthis, holding Iran responsible for any attacks by the group, which has disrupted Red Sea shipping.
Meanwhile, Israeli airstrikes in Gaza killed at least 404 people, according to Palestinian health authorities, ending a week-long ceasefire and raising fears of broader instability that could affect oil supply."
Meanwhile, fresh data from the American Petroleum Institute (API) showed that crude stocks rose by 4.59 million barrels for the week ending 14 March. However, gasoline inventories declined by 1.71 million barrels, while distillate stocks fell by 2.15 million barrels, indicating strong fuel demand.
