Economic Insights – Baghdad
Oil prices continued their downward trajectory on Monday, marking the fourth consecutive day of declines. This trend is attributed to growing expectations that a peace agreement between Russia and Ukraine could alleviate the sanctions hampering supply chains, coupled with fears that escalating global customs disputes might dampen economic growth and reduce energy demand.
Brent crude futures saw a reduction of 20 cents, equivalent to 0.2 percent, settling at $74.59 per barrel as of 01:12 GMT.
In the span of the past four sessions, Brent crude has decreased by 3.1 percent. This decline follows announcements from US President Donald Trump and his administration regarding the initiation of discussions with Russia aimed at resolving the conflict in Ukraine.
West Texas Intermediate (WTI) crude traded at $70.51 per barrel, reflecting a drop of 23 cents or 0.3 percent.
WTI has experienced a 3.8 percent decline over the past four sessions, reaching an intra-day low of $70.12, which marks its lowest point since December 30.
President Trump conveyed on Sunday his belief that he might soon meet with Russian President Vladimir Putin to deliberate on ending the military conflict in Ukraine.
This statement coincides with the preparations for preliminary talks between the United States and Russia scheduled to take place in Saudi Arabia in the upcoming days.
“The markets are exhibiting a downward trend due to the potential for a ceasefire between Russia and Ukraine, which could lead to eased sanctions on Moscow,” stated Hiroyuki Kikokawa, President of Nissan Securities.
He further commented that “the apprehensions surrounding an economic slowdown driven by tariffs, resulting from Trump’s initiatives, are also influencing price levels.” Kikokawa anticipates that WTI crude will fluctuate between $66 and $76 over the near term.
Additionally, the looming threat of a global trade war continues to weigh on prices after Trump instructed trade and economic advisors to examine the implementation of reciprocal tariffs on nations imposing duties on American goods, with recommendations expected by April 1.
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