Oil prices experienced volatile trading as escalating tensions between Russia and Ukraine sparked concerns about potential supply disruptions. West Texas Intermediate (WTI) initially fell by as much as 1.75 per cent, trading near $US58 a barrel, before briefly turning positive. The shift occurred after Russian President Vladimir Putin threatened retaliatory measures against vessels from nations aiding Ukraine, according to reports from Interfax.
Rebecca Babin, a senior energy trader at CIBC Private Wealth Group, noted the market’s sensitivity to headlines, suggesting a downward trend remains likely. She added that positive signals regarding peace negotiations could trigger more downside than stalled talks would generate upside, anticipating continued back-and-forth movement driven by conflicting narratives.
US envoy Steve Witkoff arrived in Moscow to meet with Putin, who claimed that a key Ukrainian city had fallen to Russia ahead of Tuesday’s discussions about a potential peace plan. An agreement to end the conflict could lead to a freer flow of Russian oil into global markets, which are currently anticipating oversupply. The market continues to react to developments in the ongoing geopolitical situation.
