Oil prices are attempting to stabilise above $70.00 following a decline on Friday. The potential for a peace agreement between Russia and Ukraine could enhance global oil supply, possibly leading to lower prices.

West Texas Intermediate (WTI) futures rose to approximately $70.44 in Monday’s session after reaching a low of $70.00. The outlook for oil remains uncertain as developments in U.S.-Russia discussions on the Ukraine conflict are awaited.

Last week, the U.S. indicated its willingness to continue talks with Russia after discussions in Riyadh, which did not include Ukraine and the EU. President Trump is anticipated to meet with President Putin soon, although Zelenskyy stated that any agreement lacking Ukraine’s consent would be unacceptable.

New developments in these peace talks might create pressures on oil prices. Should sanctions against Russia be lifted, seaborne oil flows could increase.

Attention also turns to OPEC’s upcoming decision on monthly supply changes. Recent reports suggest a delay in OPEC’s planned supply increase.

Brent Crude Oil, used as a global pricing benchmark, is known for its high quality due to its low sulfur content. It accounts for about two-thirds of international oil trade, offering a stable supply from the North Sea.

Brent Crude prices are influenced by supply and demand dynamics, global economic growth, and geopolitical issues. OPEC’s production decisions are vital, as alterations in quotas can affect pricing significantly.

Weekly oil inventory reports from the API and EIA provide insights into supply and demand shifts. Lower inventory levels may indicate higher demand, while increases could signal oversupply. EIA reports are generally seen as more reliable.

OPEC, which includes twelve oil-producing countries, meets twice a year to set production quotas. Their decisions can lead to fluctuations in Brent Crude prices, with OPEC+ including additional members like Russia.

Oil prices are holding above $70.00 after Friday’s dip, with the possibility of a Russia-Ukraine peace deal placing traders in a difficult spot. If an agreement is reached, Russian oil supply could rise, putting downward pressure on prices.

West Texas Intermediate (WTI) futures moved up to around $70.44 on Monday, after briefly hitting $70.00. The current price situation remains unsettled as market participants wait for developments in U.S.-Russia discussions regarding the war in Ukraine.

Last week, Washington signalled that it was open to further talks with Moscow. This came after a meeting in Riyadh that did not involve Kyiv or the European Union. Donald is expected to convene with Vladimir in the near future. However, Volodymyr has made it clear that Ukraine would reject any deal made without its involvement.

Should negotiations progress, oil prices could come under more strain. If existing penalties on Russian exports are eased, more oil may enter global markets, weighing on valuations.

OPEC’s upcoming decision on supply adjustments is also in focus. Reports suggest the group is considering delaying its planned production increase, which could limit supply growth.

Brent Crude, a key global price benchmark, is valued for its lower sulfur content and consistent production from the North Sea. It sets the price reference for around two-thirds of internationally traded crude oil.

A range of factors move Brent Crude, including supply-demand balances, broader economic trends, and political disruptions. Output decisions from producer organisations carry weight, as any change in quotas can impact availability.

Weekly updates from the American Petroleum Institute (API) and the U.S. Energy Information Administration (EIA) provide insights into short-term market fluctuations. If stockpiles decline, demand is likely outpacing supply. In contrast, rising inventory levels could suggest excess production. While both reports inform market positioning, traders typically view the EIA’s data as more dependable.

OPEC’s policies are closely followed, with the group comprising a dozen oil-producing nations. Meetings are held twice per year to set supply limits, but short-term decisions can also be made outside of these sessions. The expanded alliance, which includes Russia, has additional influence over output decisions.