Oil prices were little changed on Monday as investors shifted focus to a meeting in Washington between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy following Trump’s weekend talks with Russian President Vladimir Putin in Alaska.
Brent crude oil, against which Nigerian oil is priced, traded at $65.87 per barrel at 09:47 a.m. in Nigeria, while U.S. West Texas Intermediate (WTI) stood at $62.89 per barrel, up nine cents or 0.14 percent.
Market Focus on Peace Negotiations
Traders are closely watching the Washington meeting for signs of progress toward a peace deal to end Europe’s deadliest war in eight decades.
Trump’s discussions with Putin on Saturday revealed a shift in U.S. positioning with the White House appearing more aligned with Moscow’s preference for a comprehensive peace deal rather than an initial ceasefire.
Ole Hansen, head of commodity strategy at Saxo Bank, noted that speculative positions in crude remain vulnerable to geopolitical shocks.
“Speculators held the first-ever combined net short position in WTI (CME & ICE) as of August 12, leaving prices exposed to any upside surprises,” Hansen said. “The oil market has not priced in a full peace dividend that could see crude and European gas extend losses if a breakthrough is achieved.”
Trade Tensions and Energy Flows
Meanwhile, energy flows remain tied to global trade disputes. U.S. White House trade adviser Peter Navarro reiterated concerns about India’s purchases of Russian crude, arguing that New Delhi’s role in refining and re-exporting Russian oil continues to fund Moscow’s war.
“India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs,” Navarro said.
Analysts at Phillip Nova added that postponed trade talks between Washington and Beijing have revived concerns about supply disruptions.
“The U.S. adviser’s sharp words on India’s Russian crude imports, paired with postponed trade talks, revive concerns that energy flows remain hostage to trade and diplomatic frictions, even as peace prospects in Ukraine brighten,” said Priyanka Sachdeva, senior market analyst at the brokerage.
Outlook
Traders are also monitoring comments expected from U.S. Federal Reserve Chairman Jerome Powell at this week’s Jackson Hole symposium.
Market participants anticipate fresh guidance on the pace of interest rate cuts, with potential implications for the dollar, equity markets, and commodity flows.
While oil prices remain steady, volatility is expected to increase as geopolitical negotiations and monetary policy decisions shape global energy demand and supply expectations.
