Crude Oil Prices Steady After 2% Drop; Markets Watch Ukraine Talks and US Rate Decision

Crude oil prices remained stable today after a sharp fall in the previous session. On Monday, oil slipped nearly 2% as Iraq restarted production at one of its major oilfields. This added a fresh supply to the global market and pushed both major contracts down by more than $1.

Crude Oil Prices Hold Steady

Brent crude futures were slightly lower at $62.47 per barrel, while US West Texas Intermediate (WTI) traded at $58.84 per barrel. The small movement shows that the market is now waiting for new signals before taking a clear direction.

Iraq’s Production Restart Adds Pressure on Crude Oil Prices

Iraq resumed operations at the West Qurna-2 oilfield, one of the world’s largest. Even though Iraq contributes around 0.5% to global oil supply, any increase in output can influence prices, especially in a market already facing surplus concerns.

Focus on Ukraine Peace Talks

Global markets are closely tracking the ongoing peace discussions aimed at ending the Russia–Ukraine conflict. Progress remains slow, with major issues still unresolved. A potential agreement could lead to higher Russian oil exports, which may put further downward pressure on crude prices.

At the same time, disruption to Russia’s oil infrastructure remains a possible risk that could tighten supply.

US Interest Rate Decision in Spotlight

Investors are also watching the US Federal Reserve meeting scheduled for Tuesday and Wednesday. Markets are currently expecting a quarter-point rate cut. However, strong internal disagreements within the Fed could make the outcome uncertain and increase volatility across markets.

Mixed Global Supply Signals

While geopolitical risks continue, signs of rising global surplus are also emerging. Supply from OPEC+ and non-OPEC countries is increasing at a time when demand growth remains modest. Meanwhile, China’s independent refiners have stepped up purchases of discounted Iranian oil, reducing oversupply in onshore storage.

There are also talks within the G7 and EU about replacing the Russian price cap with a complete maritime services ban, which could reduce Russia’s ability to export oil.

US Inventory Expectations

Early estimates from industry data suggest that US crude oil stocks may have declined last week, while gasoline and distillate inventories are expected to rise.

Read more: IndiGo Share Price in Focus as Moody’s Flags Revenue Risks Amid Flight Disruptions.

Conclusion

Crude oil remains caught between rising supply and uncertainty over geopolitical developments. With key decisions on Ukraine peace efforts and US interest rates expected soon, prices may stay range-bound until clearer signals emerge.

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