Oil steadies as risk wanes on reports of Ukraine summit

The prospect of a dialogue between US President Joe Biden and Russian President Vladimir Putin to stave off military conflict in Ukraine helped calm the fluctuating global oil market in early trading on Monday, as investors contended with better-than-expected Russian energy supplies.

Brent crude futures and US West Texas Intermediate (WTI) crude rose more than US $1 a barrel at the start of Asian trade on Monday morning, but later lost nearly $1 on reports of a possible summit between the United States and Russia.

At 0445 GMT, Brent crude futures were at $93.39 a barrel, down 15 cents or 0.2 percent, after earlier touching $95, while US West Texas Intermediate (WTI) crude futures had climbed 7 cents to $91.14 a barrel, off an earlier high of $92.93.

Although developments in the Russia-Ukraine crisis continue to drive sentiment, investors also factored in the possibility of more crude coming to the market thanks to a renegotiated nuclear deal between Iran and world powers.

According to analysts at Singapore’s OCBC bank, Brent could touch US $100 in the short term, as early as next month. Notwithstanding that prospect, however, OPEC+ ministers said on Sunday that the group should stick to its current agreement to add 400,000 barrels of oil per day each month to output.