Brent tops $105 as doubts grow over supply boost from Trump’s ‘energy ceasefire’
Ukrainian President Volodymyr Zelenskyy said that "Ukraine supports the ceasefire, and it is important that Russia support it as well."
Brent crude prices surged above $105 per barrel as concerns mount over the feasibility of a potential supply boost following US President Donald Trump's proposal for an 'energy ceasefire' between Russia and Ukraine. The development has raised questions about whether such an agreement can be reached and, more importantly, whether it would lead to increased oil supplies.
The ongoing conflict between Russia and Ukraine has contributed to market volatility, with traders closely monitoring the situation for any signs of disruption to global energy supplies. A ceasefire agreement could potentially pave the way for increased oil production and exports from Russia, which could help alleviate some of the supply constraints currently affecting the market. However, with skepticism surrounding the likelihood of a lasting agreement, traders are remaining cautious.
Looking ahead, market participants will be closely watching developments in Ukraine and Russia for any signs of progress on a potential ceasefire agreement. Additionally, traders will be monitoring the weekly US crude inventory data for any signs of changes in supply and demand dynamics. If a ceasefire agreement is reached and leads to increased oil supplies, it could put downward pressure on prices. Conversely, if tensions escalate, prices could continue to rise, potentially testing recent highs.
Originally reported by cnbc.com. Trade-News adds analysis for finance & markets readers.