Oil Steadies as Trump Retreats From Ukraine-Russia Peace Talks

(Bloomberg) -- Oil was steady after a two-day gain, as the market digested signs that US President Donald Trump is pulling back from his efforts to end the war between Ukraine and Russia.

Brent crude traded near $66 a barrel, while West Texas Intermediate was below $63. Trump said that Ukraine and Russia would “immediately” begin negotiations on a ceasefire, but possibly without the US and without any sign of further pressure on the OPEC+ producer.

Crude has rebounded this month, after sliding almost 16% in April, following an easing in the trade war between the US and China that boosted risk sentiment. However, any indication of a reduction of sanctions on Russia, or fellow OPEC+ producer Iran, could potentially add more barrels to a global market that is already facing a glut this year.

Meanwhile, Iran said its ability to enrich uranium was “absolutely non-negotiable,” a key US demand in talks between the sides. A nuclear deal could pave the way for an easing of sanctions, including on oil exports.

“Both sets of talks are going to take a long time to land on agreement, and could go either way,” said Robert Rennie, head of commodity and carbon research at Westpac Banking Corp. “Brent looks expensive in the $66-$67 region and should drop back into a $60-$65 holding pattern” as OPEC+ returns shuttered production, he said.

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