Oil prices were little changed Monday, as investors eyed developments on a potential Russia-Ukraine peace deal that could ease sanctions disrupting global supply flows, reports Reuters.
Brent crude futures edged lower 8 cents, or 0.11 per cent, to $74.66 a barrel at 1202 GMT, and US West Texas Intermediate crude fell 5 cents, or 0.07 per cent at $70.69 a barrel.
The market also continued to watch the progress of peace talks, after US President Donald Trump and his administration officials announced they had begun discussions with Russia to end the war in Ukraine.
"Should sanctions relief allow it, we believe Brent crude oil prices could drop between $5 and $10/bbl if Russian barrels suddenly do not need to make a long journey to India or China, and more supply is suddenly made available," BofA analysts said in a note.
"Global refining margins could fall as well. While margins have been normalizing since the Ukraine War started, they could go even lower under sanctions relief for diesel," the analysts added.
Trump said on Sunday he believes he could meet very soon with Russian President Vladimir Putin to discuss ending the war in Ukraine. The US and Russia are preparing for initial talks in Saudi Arabia in the coming days.
Meanwhile, the risk of a global trade war is capping prices after Trump last week ordered commerce and economic officials to study reciprocal tariffs against countries that place tariffs on US goods and to return their recommendations by April 1.
"Fundamentals still point to oversupply this year, with the market struggling to assess the potential magnitude of this due to the negative impacts of US tariffs on demand growth, coupled with the potential easing of Russian sanctions," said Panmure Liberum analyst Ashley Kelty.
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