Daijiworld Media Network – New York
New York, Mar 24: Oil prices remained stable on Monday as investors closely watched ceasefire talks aimed at ending the Russia-Ukraine war, which could lead to an increase in Russian oil supply in global markets.
By 0046 GMT, Brent crude futures slipped 8 cents to $72.08 per barrel, while US West Texas Intermediate (WTI) crude edged down 5 cents to $68.23.
Both benchmarks had gained last week, marking a second consecutive weekly rise, driven by fresh US sanctions on Iran and OPEC+ output plans, raising expectations of tighter supply.
A US delegation is set to hold talks with Russian officials on Monday following discussions with Ukrainian diplomats on Sunday, aiming to advance a ceasefire in the Black Sea region and a broader resolution to the conflict.
"Expectations of progress in peace negotiations and a potential easing of US sanctions on Russian oil have put pressure on prices," said Toshitaka Tazawa, an analyst at Fujitomi Securities.
Investors are also closely monitoring OPEC+ production trends. Last week, OPEC+ announced new measures requiring seven member nations to make additional output cuts to offset previous overproduction, exceeding the group's planned production hikes for next month.
Meanwhile, Kazakhstan’s oil production has hit a record high this month due to oilfield expansion, surpassing OPEC+ quotas.
Since 2022, OPEC+ has been gradually reducing output by 5.85 million barrels per day—about 5.7% of global supply—to stabilize the market. The group recently confirmed an additional production increase of 138,000 bpd from April.
Additionally, market participants are assessing the impact of new US sanctions on Iranian oil shipments, which are expected to disrupt supplies to China in the short term, driving up shipping costs. However, traders believe buyers will find alternative ways to continue imports.
In the US, energy firms added oil and gas rigs for the first time in three weeks, signaling potential changes in domestic production trends, according to Baker Hughes.