Crude oil prices up as hope fades on peace deal

Oil prices climbed in the global commodities market as investors reacted negatively to uncertainties surrounding peace efforts. Brent crude price rose by 0.37 per cent, trading at $72.69 per barrel. 

The US benchmark West Texas Intermediate (WTI) edged higher to $69.53 per barrel.

A spat at the Oval Office meeting between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy on Friday led to the cancellation of a planned joint press conference.

The failure to finalize a rare earth agreement further deepened uncertainties in US-Ukraine relations. However, Zelenskyy secured strong support from European leaders over the weekend at a UK-hosted Ukraine summit.

‘There is clear support from Europe. Even greater unity, even stronger readiness for cooperation,’ Zelenskyy said in a late video address on Sunday after a summit with European leaders in London.

Zelenskyy said there will be many other meetings and joint efforts in the coming days and weeks. If peace talks gain momentum, easing geopolitical risks and balancing oversupply concerns are expected to keep oil prices under downward pressure.

“Uncertainty abounds following last week’s showdown between the US and Ukraine. It’s unclear where the US now stands, making a peace deal seem more distant than a week ago.

“This is altering energy-market hopes for an easing of sanctions. The shift in expectations is reflected in early morning price action for oil, with Brent up more than one per cent,” ING said.

Trump had also confirmed that tariffs on Mexico and Canada would take effect on March 4, with a 10 per cent additional tariff on Chinese imports.