Oil falls amid ongoing Ukraine talks, ahead of expected US interest rate cut
Oil prices fell on Monday as investors monitored ongoing talks to end the war in Ukraineand ahead of an expected U.S. Federal Reserve interest rate cut this week.
Brent crude futures fell by 56 cents, or 0.9%, to $63.18 a barrel by 1348 GMT, while U.S. West Texas Intermediate crude was at $59.51, down 57 cents, or 1%.
Prices marginally pared losses after sources on Monday told Reuters that Iraq shut down the entire oil production at Lukoil's, opens new tab West Qurna 2 field of around 460,000 barrels per day due to a leak on an export pipeline.
Both contracts closed Friday's trading session at their highest levels since November 18.
"If there's any kind of agreement reached in the near future on Ukraine, then Russian oil exports should increase and put downward pressure on oil prices," said Tamas Varga, oil market analyst at PVM.
Markets are meanwhile pricing in an 84% chance of a quarter-point cut at the Fed meeting on Tuesday and Wednesday, LSEG data showed. However, board member comments indicate the meeting is likely to be one of the most divisive in years, intensifying investor focus on the bank's policy direction and internal dynamics.
SLOW PROGRESS ON UKRAINE
Progress on Ukraine peace talks remains slow, with disputes over security guarantees for Kyiv and the status of Russian-occupied territory still unresolved even as President Donald Trump presses for a deal. Ukrainian President Volodymyr Zelenskiy was meeting European leaders in London on Monday.
Source: Reuters.com
