Oil prices rose by more than a dollar on Monday, as investors assessed talks between the US and Ukrainian presidents on a possible deal to end the war in Ukraine amid potential disruptions to Middle East oil supplies, UNN reports with reference to Reuters.
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Brent crude futures rose by $1.27, or 2.1%, to $61.91 per barrel by 12:00 GMT (2:00 PM Kyiv time), while US West Texas Intermediate crude rose by $1.29, or 2.3%, to $58.03.
Both benchmarks fell by more than 2% on Friday.
"Energy markets rose as geopolitical developments supported oil prices: Brent rose slightly amid renewed tensions in the Middle East and a change in the course of peace talks on Ukraine," said IG analyst Axel Rudolph, adding that low liquidity could increase volatility early next year.
Ukrainian President Volodymyr Zelenskyy said on Monday that significant progress had been made in talks with his American counterpart Donald Trump, and agreed to a meeting of American and Ukrainian delegations next week to finalize issues aimed at ending Russia's war in Ukraine.
Zelenskyy added that a meeting with Russia would only be possible after Trump and European leaders agree on Ukraine's proposed framework for a peaceful settlement.
"There has also been instability in the Middle East recently, for example, Saudi Arabian airstrikes on Yemen... perhaps this is what is causing market fears about potential supply disruptions," said Yan An, an analyst at Haitong Futures, who works in China.
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Saudi Arabia, the world's largest oil exporter, is expected to cut the February price of its flagship Arab Light crude for Asian buyers for the third consecutive month, reflecting lower spot market prices due to oversupply, six refinery sources in Asia said.
Investors are also awaiting US oil inventory data for the week ending December 19. An expanded Reuters poll showed that US crude inventories are expected to have fallen last week, while distillate and gasoline inventories are likely to have risen.
UBS analyst Giovanni Staunovo noted that strong oil imports to China are also holding back price growth in other regions. He added that $60 per barrel is the minimum price for Brent, and prices are expected to recover slightly in 2026, as supply growth from non-OPEC+ countries is likely to slow down in mid-2026.
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