LONDON: Oil prices were little changed on Monday as investors awaited talks between the US and Ukrainian presidents after an inconclusive US-Russia summit in Alaska on Friday
Brent crude futures rose 9 cents, or 0.14 percent, to $65.94 a barrel by 3 p.m. Saudi time. US West Texas Intermediate crude was up 7 cents, or 0.11 percent, at $62.87.
Last week Brent eased by 1.1 percent while WTI dropped 1.7 percent.
Traders are awaiting a meeting later in the day between US President Donald Trump and Ukrainian President Volodymyr Zelensky as they attempt to reach a peace deal to end Europe’s deadliest war in 80 years.
Investors are watching for clues on potential ramifications for global oil supply, with potential for either a tightening of sanctions or steps toward reconciliation.
“I don’t believe the oil market has priced in a full peace dividend that potentially could see prices of crude and EU gas suffer further setbacks,” said Saxo Bank commodities strategist Ole Hansen.
Trump told Ukraine on Monday to give up hopes of getting back annexed Crimea or joining NATO, emerging more aligned with Moscow on seeking a peace deal instead of a ceasefire first after his meeting with Russian President Vladimir Putin in Alaska on Friday.
The Alaska summit ended with no agreement to resolve or pause the war, though Trump emerged from talks more aligned with Moscow on seeking a peace deal rather than a ceasefire first.
Meanwhile, White House trade adviser Peter Navarro said India’s purchases of Russian crude were funding Moscow’s war in Ukraine and had to stop, reviving concerns about supply flows.
“India acts as a global clearing house for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs,” Navarro said.
The statement triggered some buying interest in the market, said SEB analyst Ole Hvalbye.
Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova, said: “The US adviser’s sharp words on India’s Russian crude imports, paired with postponed trade talks, revive concerns that energy flows remain hostage to trade and diplomatic frictions, even as peace prospects in Ukraine brighten.”
Investors are also watching for clues on US interest rates from Federal Reserve Chairman Jerome Powell’s comments at this week’s Jackson Hole meeting.
