Oil Prices Decline for Fourth Straight Session Amid US-Russia Tensions Over Ukraine Truce

Highlights:

• WTI crude oil dropped 1.7% to around US$65 per barrel at the time of writing, marking its fourth consecutive daily decline.
• Russia is reportedly considering a temporary halt to air strikes in Ukraine to avoid facing new US sanctions, including a potential crackdown on its “shadow fleet” of oil tankers.
• Tensions escalated as US President Trump threatened higher tariffs on India for purchasing Russian crude, a move New Delhi labelled as unjustified.

WTI Crude Drops 1.7% as Kremlin Considers Ceasefire Proposals

Oil markets extended their losing streak for the fourth consecutive session, with West Texas Intermediate (WTI) crude slipping 1.7% to trade near US$65 per barrel at the time of writing. The decline followed reports that Russia is evaluating potential concessions to US President Donald Trump, including a possible pause in air strikes on Ukraine, in an effort to deter additional US sanctions.

According to Bloomberg, the Kremlin is exploring various diplomatic options to avoid facing secondary sanctions, which could further isolate Moscow from global energy markets. The Financial Times also reported that President Trump is contemplating sanctions targeting Russia’s so-called “shadow fleet” of oil tankers, should President Vladimir Putin refuse to agree to a ceasefire by the upcoming Friday deadline.

Geopolitical Tensions Weigh on Market Sentiment

Crude prices rebounded slightly from intraday lows after news surfaced regarding the potential blacklisting of Russian oil vessels. However, traders remain cautious as uncertainties loom over whether the proposed sanctions will materialize. US special envoy Steve Witkoff is scheduled to visit Russia this week to engage in ceasefire negotiations.

Joe DeLaura, global energy strategist at Rabobank, commented that while Trump’s rhetoric on sanctions is impactful for market sentiment, only physical disruptions to supply routes could significantly affect Russia’s oil flows, given its extensive trade ties with India and China.

Tariff Threats on India Add to Volatility

Adding to the geopolitical strain, President Trump threatened to raise tariffs on India, accusing New Delhi of prolonging the Ukraine conflict through continued crude purchases from Russia. India has dismissed these accusations as unwarranted, further complicating diplomatic relations.

Disclaimer for Kapitales Research

The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com