The prospect of peace in Ukraine hasn’t brought much joy to the oil price as it slid in early trading today.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Brent crude futures lost 0.7% to trade at $65.09 per barrel, while West Texas Intermediate futures retreated by 1% to $62.82 a barrel.
Peace Summit
The drop came after what appeared to be a successful meeting at the White House between President Trump, Ukraine’s leader Volodymyr Zelenskyy and a gaggle of European leaders, including British Prime Minister Keir Starmer.
In a social media post following the meeting, Trump said he had spoken with Russian president Vladimir Putin and was working to arrange a summit between Putin and Zelenskyy, to be followed by a meeting of all three leaders.
An end to the conflict, calming at least one of the main geopolitical crises around the world would be a plus for the global economy. But, it might not be so welcome in the balance between oil supply and demand.
That’s because a deal could see the lifting of sanctions on Russian crude exports bringing more oil onto the market, at a time when demand is still volatile.
“An outcome which would see a ratcheting down of tensions and remove threats of secondary tariffs or sanctions would see oil drift lower toward our $58 per barrel Q4-25/Q1-26 average target,” said Bart Melek, head of commodity strategy at TD Securities.
Stocks React
Suvro Sarkar, lead energy analyst at DBS Bank, added: “Oil prices are largely responding to outcomes of recent meetings between Trump-Putin and Trump-Zelenskyy and while no outright peace deal or ceasefire seems imminent, there has been some progress made and chances of further escalation or intensification of sanctions on Russia from US or Europe may be off the table for now.”
Oil stocks BP (BP), up 0.4%, and Shell (SHEL) 0.6% higher, did not go with the flow but their U.S. rivals Chevron (CVX) and Exxon Mobil (XOM) were both down in pre-market trading.
All of these key stocks have had a volatile 2025 to date hit by international issues such as Ukraine and Iran, as well as tariff fears.
That uncertainty may be down to tempered expectations over whether the current talks will actually lead to an end in hostilities.
According to the Wall Street Journal, cryptocurrency-based prediction market, Polymarket, currently points to a 38% chance of a ceasefire, well below the 78% seen in March.
What are the Best Oil Stocks to Buy Now?
We have rounded up the best oil stocks to buy now using our TipRanks comparison tool.
