The Munich conference had virtually no impact on oil prices
17 February 2025 10:58
Oil prices remained largely unchanged on Monday as investors monitor developments regarding a potential peace deal between Ukraine and Russia. The deal is expected to ease sanctions that disrupt global supply flows. The Munich security conference held over the weekend had little impact on the markets, "Komersant Ukrainian" reports, citing Reuters.
Futures for Brent crude oil fell by 1 cent to $74.73 per barrel as of 09:40 Kyiv time, while US West Texas Intermediate fell by 7 cents to $70.67 per barrel.
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What the market is saying
The market continues to monitor the progress of peace talks after US President Donald Trump and his administration announced the start of negotiations with Russia to end the war in Ukraine.
“If the talks lead to a resolution of the conflict, more Russian oil will enter the world markets, which could have a significant negative impact on oil prices,”
– said Priyanka Sachdeva, Senior Market Analyst at Phillip Nova.
“Despite the negative trends, the short-term outlook for oil looks somewhat supported by positive signs on the demand side.”
– sachdeva added, pointing to a generally stable outlook for oil demand.
US position and role
US President Donald Trump said on Sunday that he believes a meeting with Russian President Vladimir Putin is possible “very soon” to discuss ending the war in Ukraine.
His comments come as the US and Russia prepare for initial talks in Saudi Arabia in the coming days.
US Secretary of State Marco Rubio also said on Sunday that Ukraine and Europe would be part of any “real negotiations” to end the war, signaling that this week’s US-Russia talks are an opportunity to see how serious Putin is about peace.
US and European Union sanctions on Russian oil exports have restricted its supply and disrupted maritime oil flows.
Meanwhile, the risk of a global trade war is keeping prices down after Trump last week instructed trade and economic officials to study reciprocal tariffs against countries that impose duties on U.S. goods and submit their recommendations by April 1.
US energy companies last week increased the number of oil and gas rigs for the third consecutive week, the first time since December 2023, energy services company Baker Hughes said in a report on Friday. Two new rigs were added to the US last week, an indicator of future production growth.
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