FX.co ★ Oil Falls on Hopes for Russia-Ukraine Peace Deal

On Monday, West Texas Intermediate (WTI) crude oil futures declined to approximately $68 per barrel. This movement came as traders considered the likelihood of increased oil supply from Russia, amidst international efforts to resolve the ongoing conflict between Russia and Ukraine. Scheduled discussions were set to take place between U.S. officials and their Russian counterparts later in the day, following meetings with Ukrainian diplomats the preceding Sunday. These discussions aimed at negotiating a ceasefire in the Black Sea and reducing the violence associated with the conflict. Additionally, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are preparing to gradually increase oil production by 138,000 barrels per day starting next month. The market sentiment is further impacted by concerns regarding U.S. trade policies, specifically President Donald Trump's impending tariffs set for April 2. These tariffs have sparked fears of a potential global trade war, which could potentially hinder economic growth and reduce energy demand. Furthermore, investors continue to assess the implications of the recent U.S. sanctions on Iran, which could also play a significant role in shaping oil market dynamics.