Brent declines as markets watch developments in Ukraine peace talks

The front-month ICE Brent contract has declined by $1.55/bbl on the day from Friday, to trade at $74.42/bbl at 09.00 GMT.

PHOTO: Oil barrels. Getty Images

Upward pressure:

Brent’s price held some ground amid expectations that the OPEC+ group would extend its ongoing supply cuts beyond April.

Last week, Bloomberg reported that eight members of the OPEC+ consortium may consider delaying the 2.2 million b/d output increase set to begin in April.

“The oil producing group [OPEC] is finding it increasingly difficult to phase out production cuts without disrupting the oil market,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

The Saudi Arabia-led group has postponed its decision to increase production three times since initially outlining a plan to bring supply back to the market.

“Given the economic and geopolitical uncertainties and its need to support oil prices, we expect OPEC will delay the production hikes planned for early April,” Hynes added.

Downward pressure:

Brent futures slumped on the prospect of rising supplies.

Oil market investors are awaiting new updates on the ongoing negotiations between Washington and Moscow to end the conflict in Ukraine.

Meanwhile, Ukrainian President Volodymyr Zelenskiy said on Sunday that he is willing to step down from his position if that could help in achieving a peace deal, according to a Reuters report. A ceasefire deal could see US lifting its sanctions on Russian oil exports and increase global oil supply.

“A push for a peace deal between Russia and Ukraine, will weigh somewhat on the [oil] market,” two analysts from ING Bank said earlier.

By Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online