Oil prices declined for the fourth consecutive day on Monday amid expectations that a Russia-Ukraine peace deal could ease sanctions disrupting supply flows. Additionally, concerns over global trade wars slowing economic growth and weakening energy demand also pressured prices.
Brent crude futures dropped 20 cents, or 0.2%, to $74.59 per barrel by 0112 GMT. Brent has fallen 3.1% over the past four sessions following U.S. President Donald Trump’s announcement that his administration had begun discussions with Russia to end the war in Ukraine.
U.S. West Texas Intermediate (WTI) crude fell 23 cents, or 0.3%, to $70.51 per barrel. WTI has declined 3.8% in the past four sessions and earlier on Monday hit a low of $70.12, its weakest level since December 30.
On Sunday, President Trump stated that he believed he could meet Russian President Vladimir Putin “very soon” to discuss ending the war in Ukraine.
His remarks come as the U.S. and Russia prepare for initial talks in Saudi Arabia in the coming days.
U.S. Secretary of State Marco Rubio also emphasized that Ukraine and Europe would be included in any “real negotiations” to end Moscow’s war, adding that this week’s U.S.-Russia talks would gauge how serious Putin is about achieving peace.
“Markets are declining due to 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 trade wars, triggered by Trump’s actions, are also weighing on prices,” he said, predicting WTI to fluctuate between $66 and $76, as further declines in oil prices could curb U.S. production.
Sanctions imposed by the U.S. and European Union on Russian oil exports have restricted shipments and disrupted seaborne supply flows. If a peace deal is reached and sanctions are lifted, global energy supplies are expected to rise.
The risk of a global trade war is also putting downward pressure on prices. Last week, Trump ordered commerce and economic officials to study reciprocal tariffs against countries imposing tariffs on U.S. goods, with recommendations due by April 1.
Meanwhile, U.S. energy firms have increased oil and gas rigs for the third consecutive week, marking the first such rise since December 2023.
According to energy services firm Baker Hughes, the oil and gas rig count, a key indicator of future output, increased by two to 588 in the week ending February 14.
