Oil Prices Steady After Early Drop, Ukraine, US Outlook in Focus
Oil prices steadied after an early drop, with talks to end the war in Ukraine and a US credit downgrade in focus.
Brent crude fell as much as 1.1% to below $65 a barrel before recovering, while West Texas Intermediate traded near $62. US President Donald Trump and Vladimir Putin are due to speak by phone on Monday, though the Russian leader may believe he has the upper hand in the battle and is therefore unlikely to make concessions.
Meanwhile, Moody’s Ratings withdrew the US government’s top credit rating late Friday, adding to concerns about the outlook for global growth. The downgrade, followed by other major rating agencies, risks amplifying Wall Street’s growing concerns about the US Treasury bond market and a slowing economy.
Crude prices have risen again over the past two weeks on growing uncertainty over the progress of US-Iran talks and following an Israeli attack on Houthi-held Yemeni territory that has prompted vows of retaliation. Oil futures are still down more than 10% this year as Trump’s trade war threatens demand and OPEC+ reinstates production cuts to a market that is expected to be oversupplied later this year. Brent for July settlement was little changed at $65.45 a barrel at 7:33 a.m. in Singapore. WTI for June delivery was steady at $62.50 a barrel.
Source: Bloomberg
