Oil prices steadied on Tuesday after falling roughly 2% in the previous session, as traders monitored developments in peace talks aimed at ending Russia’s war in Ukraine and awaited the Federal Reserve’s upcoming interest rate decision, Reuters reported. Brent crude futures were down 2 cents, or 0.03%, at $62.47 a barrel, while U.S. West Texas Intermediate crude fell 4 cents, or 0.07%, to $58.84.
The previous day’s losses were driven in part by Iraq restoring production at Lukoil’s West Qurna 2 oilfield, one of the world’s largest, adding to supply concerns. Analysts noted that oil has remained in a tight trading range as markets weigh the outcome of ongoing peace negotiations. “Oil is keeping to a tight trading range until we get a better idea of which way the peace talks will go,” said Tim Waterer, chief market analyst at KCM Trade. He added that prices could rise if talks collapse or fall if progress suggests a resumption of Russian supply to global markets.
Diplomatic developments include Ukraine sharing a revised peace plan with the U.S. following meetings in London between President Volodymyr Zelenskiy and leaders from France, Germany, and Britain. Meanwhile, sources familiar with discussions said the Group of Seven countries and the European Union are considering replacing a price cap on Russian oil exports with a full maritime services ban to curb Russian revenue.
Market attention is also focused on the Federal Reserve, which is expected to announce its policy decision on Wednesday, with an 87% probability of a quarter-point rate reduction currently priced in. Analysts at BMI Research forecast that oversupply in the energy market could keep prices under pressure in 2026, though crude may recover later in the year as U.S. shale production slows and global consumption continues to grow.
