Brent steady as US fails to secure Russia-Ukraine ceasefire

The front-month ICE Brent contract has remained unchanged on the day, to trade at $65.89/bbl at 09.00 GMT.

IMAGE: Oil storage tanks. Getty Images

Upward pressure:

Brent’s price has remained steady as the global oil market digested the outcome of US President Donald Trump’s meeting with Ukrainian counterpart Volodymyr Zelensky and key European leaders.

Last week, Trump met with Russian President Vladimir Putin in Alaska with the expectations to reach a ceasefire deal in the Ukraine conflict. However, no such outcomes were achieved.

“Trump and Putin walked away without a ceasefire, without even the illusion of one,” said SPI Asset Management managing partner Stephen Innes.

Oil market analysts now await the upcoming negotiations – a bilateral meeting between Zelensky and Putin, followed by a trilateral meeting involving the two conflicting nations and the US.

The Putin-Zelensky meeting “will be crucial, marking the first time the leaders meet since the war started,” remarked two analysts from ING Bank. “Betting markets aren’t overly convinced that we’ll see a ceasefire before the end of the year,” the analysts added.

Downward pressure:

Brent’s price felt some pressure amid trade concerns, after Washington imposed secondary tariffs on India in response to its continued imports of Russian oil. These tariffs are set to come to effect on later this month.

“The deadline (27 August) to come to a deal before tariffs are introduced is nearing,” ING Bank’s analysts said.

The move has fuelled worries over potential disruptions to trade flows and slower demand growth, weighing further on commodities like oil, according to market analysts.

“To make matters worse, trade talks that were set to take place in late August have reportedly been postponed,” the two analysts added.

By Aparupa Mazumder

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