Oil Prices Grow on Investors Optimism Over US-Ukraine Meeting

By Adedapo Adesanya

Oil prices appreciated by 1 per cent on Monday after fresh talks between US President Donald Trump and his Ukrainian counterpart following an inconclusive US-Russia summit in Alaska on Friday.

Brent crude futures gained 75 cents or 1.14 per cent to close at $66.60 a barrel, and the US West Texas Intermediate (WTI) crude futures grew by 62 cents or 0.99 per cent to $63.42 per barrel.

President Trump and Ukraine’s President Volodymyr Zelenskiy met on Monday at the White House to discuss a path to ending Russia’s war in Ukraine, where the former expressed hope that the meeting could eventually lead to a trilateral meeting with President Vladimir Putin of Russia, adding that he believes Putin wants the war to end.

He told Ukraine on Monday to give up hopes of getting back annexed Crimea or joining NATO, emerging more aligned with Moscow on seeking a peace deal instead of a ceasefire first after his meeting with President Putin on Friday.

The summit had ended with no agreement to resolve or pause the war, though President Trump emerged from talks more aligned with Russia on seeking a peace deal rather than a ceasefire first.

Meanwhile, Ukraine on Monday stepped up attacks on Russia’s energy infrastructure as it drones struck an in Russia’s Tambov region, leading to the suspension of supplies , providing some support to oil prices.

For Europe, the stakes are high because Hungary and Slovakia remain heavily reliant on Russian crude delivered through the Druzhba pipeline, which continues to operate despite sanctions.

Any change in US enforcement policy could determine whether those flows remain tolerated or come under tighter restrictions, forcing Central European countries to seek more seaborne alternatives from the Middle East and the US Gulf.

There was also support as the US said India’s purchases of Russian crude were funding the war in Ukraine and had to stop, reviving concerns about supply flows.

The US trade adviser Peter Navarro said India helps convert embargoed Russian crude into high-value exports while giving Russia the Dollars it needs to fund the three-year war.

Investors are also watching for clues on US interest rates from Federal Reserve Chairman Jerome Powell’s comments at this week’s meeting.

Also, Hamas agreed to a 60-day ceasefire proposal with Israel that includes the release of half the hostages held in Gaza and Israel’s release of some Palestinian prisoners.