Oil slipped as US-Russia talks raised questions over global supply dynamics
Crude remains on track for a quarterly loss, pressured by an escalating global trade war that threatens demand. Meanwhile, OPEC and its allies are set to increase production in April, further weighing on market sentiment.
Oil prices declined by about 1% on Tuesday, 18 March 2025, as US-Russia negotiations over the Ukraine conflict fuelled speculation about potential sanctions relief on Russian fuel exports.
Brent crude futures settled 51 cents lower at $70.56 a barrel.
West Texas Intermediate (WTI) crude dropped 68 cents to $66.90.
Market participants assessed the possible implications of a broader Russia-Ukraine ceasefire after Russia agreed to suspend attacks on Ukraine's energy infrastructure for 30 days. However, analysts cautioned that even if sanctions were lifted, a meaningful recovery in Russian crude exports could be protracted. Russia’s crude production stood at 9.2 million barrels per day (bpd) in 2024, subdued compared to the last peak of 9.8 million barrels per day in 2022.
Crude remains on track for a quarterly loss, pressured by an escalating global trade war that threatens demand. Meanwhile, OPEC and its allies are set to increase production in April, further weighing on market sentiment.
Written by: Derek Yong