Oil prices slipped on Monday as investors assessed the outlook for ceasefire talks aimed at ending the Russia-Ukraine war, which could lead to an increase in Russian oil to global markets.
Brent crude futures were down 25 cents, or 0.4 percent, at $71.91 a barrel. US West Texas Intermediate crude fell 20 cents, or 0.3 percent, to $68.08.
Both benchmarks settled higher on Friday and recorded a second consecutive weekly gain as fresh US sanctions on Iran and the latest output plan from the OPEC+ producer group raised expectations of tighter supply.
A US delegation will seek progress toward a Black Sea ceasefire and a broader cessation of violence in the war in Ukraine when it meets for talks with Russian officials on Monday, after discussions with diplomats from Ukraine on Sunday.
“Expectations of progress in peace negotiations between Russia and Ukraine and a potential easing of US sanctions on Russian oil pressured prices lower,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.
“But investors are holding back on large positions as they evaluate future OPEC+ production trends beyond April,” he added.
OPEC+ – the Organization of the Petroleum Exporting Countries and allies including Russia – on Thursday issued a new schedule for seven member nations to make further oil output cuts to compensate for pumping above agreed levels, which will more than overtake the monthly production hikes the group plans to introduce next month.
