Oil prices experienced a slight dip on Monday as the focus shifted to the upcoming meeting between Ukrainian President Volodymyr Zelenskiy and Russian President Vladimir Putin, following their summit in Geneva last week.
Brent crude futures fell by 0.2%, to $73.37 a barrel, while U.S. West Texas Intermediate (WTI) crude futures dropped by 0.3%, to $71.81 a barrel. This decline comes after both benchmarks saw gains of more than 2% last week.
The market’s attention has now turned to the meeting between Zelenskiy and Putin, which is set to take place on Tuesday in Moscow. This will be their first face-to-face meeting since Zelenskiy took office in 2019.
The outcome of this meeting could have significant implications for the global oil market, as Ukraine is a major transit route for Russian gas exports to Europe. Any potential disruptions or agreements between the two leaders could impact the supply and demand of oil in the region.
Last week’s summit between Putin and U.S. President Joe Biden also had an impact on oil prices, as the two leaders discussed a potential return to the 2015 Iran nuclear deal. If the U.S. lifts sanctions on Iran, it could lead to an increase in oil supply from the country, which would put downward pressure on prices.
In addition, the ongoing negotiations between the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, also continue to influence the market. The group is expected to meet on July 1 to discuss their production policy for the remainder of the year.
Overall, the oil market remains volatile as it navigates through various geopolitical factors and the ongoing COVID-19 pandemic. Investors will be closely watching the outcomes of the Zelenskiy-Putin meeting and the OPEC+ meeting for any potential impact on oil prices.
