Oil steadies with Ukraine peace talks, US rate decision in spotlight
Oil prices steadied on Tuesday after falling 2% in the previous session, with investors keeping a close eye on peace talks to end Russia’s war in Ukraine, concerns about ample supply and a looming decision on U.S. interest rates.
Brent crude futures edged 3 cents higher to $62.52 a barrel at 1317 GMT. U.S. West Texas Intermediate crude gained 4 cents at $58.92 a barrel.
Both contracts fell by more than $1 a barrel on Monday after Iraq restored production at Lukoil’s West Qurna 2 oilfield, one of the world’s largest.
Ukraine will share a revised peace plan with the U.S. after talks in London between its President Volodymyr Zelenskiy and the leaders of France, Germany and Britain.
"Oil is keeping to a tight trading range until we get a better idea of which way the peace talks will go," KCM Trade chief market analyst Tim Waterer said.
"If the talks break down, we expect oil to move higher, or if progress is made, and there is a likelihood of Russian supply to the global energy market resuming, prices would be expected to drop," he added.
According to sources familiar with the matter, the Group of Seven countries and the European Union are in talks to replace a price cap on Russian oil exports with a full maritime services ban in a bid to reduce Russia’s oil revenue.
Source: Reuters.com
