Oil prices fall amid US tariffs, Russia-Ukraine peace efforts
Oil prices decreased on Monday as US tariffs raised demand concerns, while Russia-Ukraine peace efforts eased geopolitical risks.
The international benchmark Brent crude decreased by 0.37%, trading at $72.69 per barrel at 11.27 a.m. local time (0827 GMT), down from $72.96 at the close of the previous session.
The US benchmark West Texas Intermediate (WTI) declined by 0.34%, settling at $69.53 per barrel, compared to its prior session close of $69.77.
A tense Oval Office meeting between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy on Friday led to the cancellation of a planned joint press conference. The failure to finalize a rare earth agreement further deepened uncertainties in US-Ukraine relations.
However, Zelenskyy secured strong support from European leaders over the weekend at a UK-hosted Ukraine summit.
'There is clear support from Europe. Even greater unity, even stronger readiness for cooperation,' Zelenskyy said in a late video address on Sunday after a summit with European leaders in London.
Zelenskyy said there will be many other meetings and joint efforts in the coming days and weeks.
If peace talks gain momentum, easing geopolitical risks and balancing oversupply concerns are expected to keep oil prices under downward pressure.
Trump had also confirmed that tariffs on Mexico and Canada would take effect on March 4, with a 10% additional tariff on Chinese imports.
Analysts warn that these tariffs could slow economic growth, weaken energy demand, and fuel inflation, potentially triggering a trade war that might later push oil prices higher.
Meanwhile, rising economic activity in China, the world's largest crude oil importer, limits downward pressure on prices. Official data shows that China's manufacturing sector grew at its fastest pace in three months in February.
While experts note that China's PMI data suggests manufacturing had a solid start to 2025, a new wave of US tariffs on China may dampen the country's economic outlook.
Investors will closely monitor the country's annual parliamentary meeting on March 5 for economic stimulus measures.
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