Oil prices dip, prolonging last week's downturn
Oil prices take a dip Monday morning, prolonging last week's price drop. The price trend follows intensifying diplomatic steps to end the war in Ukraine and market expectations of higher interests, writes Reuters.
A barrel of European benchmark crude Brent costs USD 110.61 Monday morning against USD 111.95 Friday afternoon. At the same time, US benchmark crude West Texas Intermediate trades at USD 106.76 per barrel against USD 109.20 Friday afternoon.
"Oil prices might continue moderating this week as investors have been digesting the impact of sanctions on Russia, along with parties showing signs of negotiation towards ceasing fire," says analyst at CMC Markets Tina Teng.
On Sunday, US Deputy Secretary of State Wendy Sherman noted that Russia is showing signs of willingness to enter into negotiations with Ukraine, writes Reuters. Ukrainian negotiator Mykhailo Podolyak also stated that Russia has started to engage constructively.
Moreover, the Federal Reserve is expected to raise the dollar interest rate later this year, which would exert additional downward pressure on oil prices.
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