Crude Oil Pulled Back on Monday Amid Ongoing Russia-Ukraine Talks

Rising oil prices pulled back on Monday after the Ukrainian presidential adviser confirmed that talks have begun between the two nations at the Belarusian border.

Brent crude oil, the global benchmark for Nigerian oil, dropped $100.08 per barrel it attained in the early hours of today to $97.26 barrels by 11:30 am Nigerian time. The U.S West Texas Intermediate declined from $98.21 per barrel to $93.81.

Ukrainian delegation has arrived for talks with Russia at Ukraine-Belarus border, office of the president said. It consists of defence minister Reznikov, deputy foreign minister Tochytskyi, presidential advisor Podoliak, MPs Arakhamia and Umerov, TCG representative Kostin.

If everything goes well, the two nations could announce a cease-fire immediately.

“If there’s any progress made in this meeting, we’re going to see a sharp reversal in markets – we’ll see stocks rise, the dollar rise and oil fall,” said OANDA analyst Jeffrey Halley.

However, nations and companies continued to dissociate from Russia. British oil major BP has exited its Russian oil and gas investments, opening a new front in the West’s campaign to isolate Russia’s economy. BP is Russia’s biggest foreign investor.

The sanctions and the exodus of Western oil companies could impact Russian oil production in near term, analysts said.