Oil Prices on Edge Ahead of Zelenskiy-Trump Meeting: Key Implications for Investors and Businesses in Oman
LONDON – Oil prices remained steady on Monday as traders awaited the outcome of a key meeting between US President Donald Trump and Ukrainian President Volodymyr Zelenskiy, aimed at reaching a peace agreement to end Europe’s deadliest conflict in eight decades.
At 0847 GMT, Brent crude futures were priced at $65.87 per barrel, while US West Texas Intermediate (WTI) crude rose by 9 cents, or 0.14%, to $62.89 per barrel.
Over the weekend, Trump met with Russian President Vladimir Putin in Alaska, where both leaders appeared to align on prioritizing a peace deal rather than a ceasefire as the initial step.
Ole Hansen, head of commodity strategy at Saxo Bank, noted, “Market focus now shifts to today’s Washington meeting for signs of a deal that could eventually increase crude and gas supply.” He added that in the week ending August 12, speculators held the first-ever combined net short position in WTI (CME & ICE), leaving prices vulnerable to any upward surprises.
Hansen further remarked, “I don’t believe the oil market has fully priced in a peace dividend, which could potentially cause further declines in crude and European gas prices.”
Earlier in the session, crude prices edged higher following remarks from White House trade adviser Peter Navarro, who criticized India’s purchases of Russian crude for potentially funding Moscow’s war efforts in Ukraine. Navarro stated, “India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while supplying Moscow with the dollars it needs.”
Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova, commented that Navarro’s pointed remarks on India’s Russian crude imports, combined with postponed trade talks, have reignited concerns that energy flows remain entangled in trade and diplomatic tensions despite improving prospects for peace in Ukraine.
On Saturday, Trump indicated that while he did not currently see the need to impose retaliatory tariffs on countries like China for buying Russian oil, such measures might be necessary “in two or three weeks,” easing early fears of a disruption in Russian oil supplies.
China remains the world’s largest oil importer and is the biggest buyer of Russian oil, followed by India.
Investors are also closely monitoring Federal Reserve Chairman Jerome Powell’s remarks at the upcoming Jackson Hole symposium regarding the future path of US interest rate cuts, which could potentially boost stock markets to new highs.
—Reuters
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The ongoing geopolitical shifts and potential peace deals in Ukraine signal volatile oil prices ahead, with possible downward pressure if peace leads to increased supply. For businesses in Oman, this means strategic focus on cost management and market flexibility is crucial, while smart investors should monitor diplomatic developments closely to capitalize on price swings and emerging trade tensions, particularly involving major importers like China and India.
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