Future oil contracts closed the trading session on Tuesday, falling in NY, after the White House announced that it had reached separate agreements with Ukraine and Russia to ensure safe navigation in the Black Sea and implement the ban on power facilities in both countries. Brent ended the day close to stability.
At the New York Mercantile Exchange (Nymex), the WTI oil contract for May fell 0.16% ($ 0.11), closing at $ 69.00 a barrel. Brent for June, negotiated at the Exchange Intercontinental (ICE), rose 0.03% (US $ 0.02), reaching US $ 72.39 the barrel.
Although the market assimilated the agreements, Ukraine President Volodymyr Zelensky said that “if there are new air alerts, more military activity in the Black Sea, more manipulations and Russian threats, it will be necessary to adopt new measures directly against Moscow.”
Also read:
Business also went under the impact of “secondary” tariffs on countries that imported Venezuelan crude oil, announced Monday by the US. Such rates can affect only China, India, France, Germany and Italy, who together bought less than 600,000 barrels per day of Venezuelan oil by 2024.
“Although sanctions are a short -term rise factor, US production is still close to record levels, and if there is a peace agreement between Russia and Ukraine, it is very likely that Russian oil and gas restrictions are relieved, which would be more than compensated for this impact,” says Bok Financial Dennis Kissler.
Continues after advertising
“US tariffs on Venezuelan gross oil launch new doubts about the reliability of the global offer,” says Elliot Busby of Rystad Energy. “However, with OPEC+ organization of oil exporting countries and allies prepared to relieve production cuts from April, the impulse in prices is contained because there are barrels available to compensate for losses.”
According to Kieran Tompkins of the capital Economics, “OPEC +’s idle capacity and its apparent willingness to increase production reduce part of the risks of possible market disruption” caused by President Donald Trump’s foreign policy.
*With information from Dow Jones Newswires
