Crude oil prices fell on Monday as traders weighed prospects of peace in Ukraine against uncertainty over U.S. sanctions policy toward Russia.
Brent slipped 0.71% to $66.13, WTI crude dropped 0.69% to $62.98, and Murban eased 0.74% to $68.62. U.S. natural gas also declined, losing 0.55% to $2.874 per million British thermal units.
Washington Talks Drive Sentiment
Ukrainian President Volodymyr Zelensky’s arrival in Washington for talks with U.S. President Donald Trump has drawn intense market scrutiny. Traders see the discussions as pivotal, since any adjustments to sanctions enforcement could reshape global supply flows.
Last week’s Trump–Putin meeting in Alaska had already calmed immediate fears of disruption, and Monday’s developments reinforced that sense of easing risk.
Druzhba Pipeline Flashpoint
On Monday morning, a Ukrainian strike on a transformer station temporarily halted Russian oil flows through the Druzhba pipeline to Hungary and Slovakia. Budapest condemned the stoppage as a threat to national energy security, while Kyiv argued Moscow alone bears responsibility for supply instability.
Analysts Split on Outlook
Bjarne Schieldrop, chief commodities analyst at SEB, said “talks about U.S. sanctions towards Russia are now blowing in the wind,” reflecting skepticism over tighter enforcement.
Phil Flynn of Price Futures Group warned that speculation remains high: “The market is still locked in a speculative fervor right now. Traders seem torn between optimism over peace and pessimism over weaker sanctions.”
Meanwhile, Ole Hansen of Saxo Bank highlighted remarks by U.S. trade adviser Peter Navarro, who labeled India a “clearinghouse for Russian oil,” reviving concerns about fragile supply chains.
Short-Term Direction
Murban crude briefly climbed 1.07% to $69.01 before giving back gains, while natural gas slipped marginally on mild weather forecasts. Analysts said oil prices will remain headline-driven this week, with the Washington talks expected to dictate near-term momentum.