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Oil prices fall for the fourth day in a row on hopes of a Russia-Ukraine Peace

Oil prices fall for the fourth day in a row on hopes of a Russia-Ukraine Peace

On Monday, oil prices fell for the fourth consecutive day as a result of expectations that a Russia-Ukraine agreement would ease sanctions disrupting supplies and concerns about global tariff wars slowing economic growth and reducing energy demand.

Brent crude futures fell 20 cents or 0.2% to $74.59 per barrel at 0112 GMT. Brent crude futures have fallen 3.1% over the last four sessions since U.S. president Donald Trump and officials from his administration announced that they were in talks with Russia about ending the war in Ukraine.

U.S. West Texas Intermediate Crude was trading at $70.51 per barrel, down by 23 cents or 0.3%. WTI has fallen 3.8% in the last four sessions and on Monday, it fell to $70.12, which is its lowest level since December 30.

Donald Trump, the U.S. president, said that he believed he would be able to meet with Russian President Vladimir Putin "very soon" to discuss ending Ukraine's war.

His comments coincide with the United States' and Russia's preparations for the first round of talks to be held in Saudi Arabia within the next few days.

U.S. Secretary Marco Rubio said that on Sunday, Ukraine and Europe will be included in any "real negotiation" to end Moscow’s war. This signals the fact that U.S.-Russian talks this week are a chance for us to determine how serious Putin really is about peace.

Hiroyuki Kikukawa is the president of NS Trading a division of Nissan Securities. He said that markets are down due to a possible ceasefire between Russia and Ukraine, as well as a potential relief of sanctions on Moscow.

He said that Trump's actions are also contributing to the price increase. He predicted WTI would trade between $66 and $76 for some time, as further drops in oil prices may reduce U.S. production.

The sanctions imposed by the U.S., and European Union against Russian oil exports has curtailed its shipments. They have also disrupted oil supplies at sea. In the event that a peace agreement is reached, lifting the sanctions should increase global energy supplies.

After Trump ordered last week that officials from the departments of commerce and economy study the possibility of reciprocal tariffs for countries who impose tariffs on U.S. products and return their recommendations before April 1, prices are also being impacted by this risk.

Baker Hughes, a leading energy services company, said that the U.S. added oil and gas rigs last week for a record third consecutive week for the first since December 2023.

The number of oil and gas drilling rigs, a good indicator of future production, increased by two in the week ending February 14, to 588. (Reporting and editing by Christian Schmollinger; Yuka Obayashi)

(source: Reuters)