Oil prices fell yesterday following speculations by traders of possible ceasefire in that the war between Russia and Ukraine could result in easing or the end to sanctions on Russian crude oil, which will in turn boost global supply.
According to Reuters, the price of Brent crude futures fell by 0.75 per cent, to $66.10 a barrel while US West Texas Intermediate crude futures for September delivery, set to expire on Wednesday, declined by 72 cents, or 1.14 per cent to trade at $62.70 per barrel.
It further reported that the more active October WTI contract was down 66 cents, or 1.05%, at $62.04 a barrel. US President Donald Trump announced in a social media post that he had spoken with Russian President Vladimir Putin, following a White House meeting with Ukrainian President Volodymyr Zelenskiy and European allies.
He stated that arrangements were being made for a meeting between Putin and Zelenskiy, which could lead to a trilateral summit involving all three leaders. Senior analyst with Price Futures Group, Phil Flynn, said: “Even with this peace dividend, we have a record short position.
Because of the size of the short position, people are betting on a cease-fire and if we don’t get one there could be a bounce.” Lead energy analyst at DBS Bank, Suvro Sarkar said Trump’s softened stance on secondary sanctions targeting importers of Russian oil had reduced the risk of global supply disruptions, easing geopolitical tensions slightly.
