Dennis Lobuntu Ndlovu
Business Reporter
Oil prices remained flat on Monday as traders closely monitored high-stakes diplomatic talks in Washington between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy, a meeting widely seen as pivotal in shaping the path toward a possible peace agreement to end Europe’s deadliest conflict in 80 years.
Brent crude held at 65.87 per barrel, while U.S. West Texas Intermediate (WTI) crude ticked up by 0.1462.89, amid cautious optimism. The market has priced in little movement so far, awaiting clearer signals from the leaders’ discussions.
Earlier this week, Trump met Russian President Vladimir Putin in Alaska, an encounter interpreted by analysts as a sign of Washington’s openness to Moscow’s push for a formal peace deal, rather than a ceasefire.
“Any lasting peace agreement could dramatically shift market sentiment,” said senior energy strategist Maria D’Amico.
“We could see oil and gas prices fall as fears of long-term supply disruption ease.”
This comes at a time when the oil market is particularly fragile. Speculators are holding a net short position in WTI for the first time in history, making prices especially vulnerable to sudden upward swings.
Meanwhile, geopolitical frictions continue to simmer. U.S. trade adviser Peter Navarro took aim at India for its ongoing purchase of Russian oil, accusing New Delhi of indirectly fueling Moscow’s war. “When nations keep buying Russian crude, they’re funding a war machine,” Navarro stated sharply, adding pressure on countries that have not aligned with Western sanctions.
Trump added fuel to market uncertainty, suggesting retaliatory tariffs could be imposed on countries importing Russian oil “in two or three weeks.” His comment has left analysts watching how key buyers like China and India might respond, especially as tensions rise over global energy alliances.
Beyond geopolitics, investors are also awaiting economic cues from Federal Reserve Chair Jerome Powell, who is set to speak at the Jackson Hole symposium. Many are hoping for signals on future interest rate policy, which could affect oil demand forecasts and currency fluctuations.
As the world watches Washington, traders remain on edge, with energy markets caught between diplomacy, politics, and economic recalibration.
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