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Oil prices rose by 2% on Monday
As investors awaited developments in talks between the U.S. and Ukrainian presidents regarding a potential agreement to end the war in Ukraine, amid concerns about possible disruptions to oil supplies in the Middle East.
Brent crude futures climbed $1.33, or 2.2%, to $61.97 a barrel, while U.S. West Texas Intermediate crude futures rose $1.31, or 2.3%, to $58.05 a barrel.
Both benchmark crudes had fallen by more than 2% on Friday, as investors worried about an impending global supply glut and the prospects for a peace agreement in Ukraine, ahead of talks earlier in the week between Ukrainian President Volodymyr Zelensky and U.S. President Donald Trump, according to Reuters.
Analyst Axel Rudolph of IG said, "Energy markets have risen, supported by geopolitical developments that have boosted crude oil prices, with Brent crude gaining slightly due to renewed tensions in the Middle East and a shift in the course of Ukrainian peace talks." He added that tight liquidity could exacerbate volatility at the start of next year.
On Sunday, Trump said his talks with Zelensky indicated they were "very close, perhaps very close" to reaching an agreement to end the war in Ukraine, while acknowledging that the fate of the disputed Donbas region remained a key outstanding issue.
Trump's remarks came during a joint press conference held by the two leaders late Sunday afternoon, following their meeting at his Mar-a-Lago resort in Florida, where he said the picture of the negotiations would become clearer in a few weeks.
Tony Sycamore, an analyst at IG, said West Texas Intermediate crude is expected to trade in a range of $55 to $60 a barrel, amid anticipation of the United States tightening its measures against Venezuelan oil shipments and any potential fallout from the U.S. military strike against ISIS targets in Nigeria, which produces about 1.5 million barrels per day.
