Oil prices were little changed on Tuesday after rising more than 2% in the previous session as investors sought clarity on peace talks on the war in Ukraine to assess potential supply disruptions, Reuters reports, writes UNN.
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Brent crude futures for February delivery, which expire on Tuesday, fell 2 cents to $61.92 a barrel as of 03:14 GMT (05:14 Kyiv time). The more active March contract was at $61.44, down 5 cents. US West Texas Intermediate crude fell 5 cents to $58.03.
Brent and WTI benchmarks closed more than 2% higher in the previous session after Moscow accused Kyiv of allegedly attacking the residence of Kremlin head Vladimir Putin, raising fears of supply disruptions, the publication writes. Kyiv rejected Moscow's accusations as baseless and aimed at undermining peace talks. After a phone call with Putin, US President Donald Trump said he was outraged by the details of the attack.
The escalation of geopolitical tensions, despite Trump's repeated statements that a peace deal could be close, could put pressure on oil prices, the publication indicates.
"I think the markets feel that it will be very difficult to reach a deal," said Marex analyst Ed Meir.
Traders are also concerned about developments in the Middle East after Trump said the United States could support another major strike on Iran if Tehran resumes its ballistic missile or nuclear weapons programs.
Trump also warned the Palestinian militant group Hamas of severe consequences if it does not disarm, adding that he wants to move to the second phase of the ceasefire agreement between Israel and Hamas, which was reached in October after two years of war in Gaza.
Despite growing concerns about potential supply disruptions due to geopolitical tensions, the perception of a global market oversupply persists, which could curb price growth, analysts believe.
Marex said prices would fall in the first quarter of 2026 due to a "growing oil surplus."
"Given the conflicting trends: US-initiated peace efforts and fears of oversupply, as well as simmering geopolitical tensions, we expect WTI oil prices to continue to fluctuate in the $55-60 range in the near term," analysts said in a note.