Oil slips as investors monitor Russia-Ukraine ceasefire talks
Oil prices slipped on Monday as investors assessed the outlook for ceasefire talks aimed at ending the Russia-Ukraine war, which could lead to an increase in Russian oil to global markets.
Brent crude futures were down 25 cents, or 0.4%, at $71.91 a barrel by 0409 GMT. U.S. West Texas Intermediate crude fell 20 cents, or 0.3%, to $68.08.
Both benchmarks settled higher on Friday and recorded a second consecutive weekly gain as fresh U.S. sanctions on Iran and the latest output plan from the OPEC+ producer group raised expectations of tighter supply.
A U.S. delegation will seek progress toward a Black Sea ceasefire and a broader cessation of violence in the war in Ukraine when it meets for talks with Russian officials on Monday, after discussions with diplomats from Ukraine on Sunday.
OPEC+ - the Organization of the Petroleum Exporting Countries and allies including Russia - on Thursday issued a new schedule for seven member nations to make further oil output cuts to compensate for pumping above agreed levels, which will more than overtake the monthly production hikes the group plans to introduce next month.
OPEC+ has been cutting output by 5.85 million barrels per day, equal to about 5.7% of global supply, agreed in a series of steps since 2022 to support the market.
It confirmed on March 3 that eight of its members would proceed with a monthly increase of 138,000 bpd from April, citing healthier market fundamentals.
Market participants are also monitoring the impact from new Iran-related U.S. sanctions announced last week.
Source : Reuters
