Oil prices rose by more than $1 on Monday as investors weighed talks between the U.S. and Ukrainian presidents on a possible deal to end the war in Ukraine against potential oil supply disruption in the Middle East. Brent crude futures rose $1.27, or 2.1%, to $61.91 a barrel by 1200 GMT while U.S. West Texas Intermediate crude was up $1.29, or 2.3%, at $58.03. Both benchmarks fell by more than 2% on Friday.
“Energy markets moved higher as geopolitical developments lent support to crude prices, with Brent edging up on renewed Middle East tensions and shifting Ukraine peace talks,” said IG analyst Axel Rudolph, adding that thin liquidity could amplify volatility into the start of next year. Ukrainian President Volodymyr Zelenskiy said on Monday that significant progress had been made in talks with U.S. counterpart Donald Trump and agreed that U.S. and Ukrainian teams would meet next week to finalise issues aimed at ending Russia’s war in Ukraine.
Zelenskiy added that a meeting with Russia would be possible only after Trump and European leaders agree on a Ukraine-proposed framework for peace. “The Middle East has also been unsettled recently, with Saudi air strikes in Yemen … this may be what’s driving market concerns about potential supply disruptions,” said Yang An, a China-based analyst at Haitong Futures.
