Oil Prices Drop Amid Ukraine Tensions
The price of oil has fallen further after US President Donald Trump reportedly suspended military aid to Ukraine. This news was reported by Reuters on March 4.
A disagreement between Trump and Ukrainian President Volodymyr Zelensky in the Oval Office last week led to the decision. Neither side has officially confirmed the freeze, but it’s had an impact on oil prices.
Brent crude oil futures fell by 54 cents, or 0.75%, to $71.08 per barrel. Meanwhile, futures for US West Texas Intermediate crude oil decreased by 36 cents, or 0.53%, to $68.01 per barrel.
The market thinks that the distancing of the US and Ukraine might lead to a decrease in sanctions against Russia. This could allow more Russian oil to be bought, which is why oil prices have fallen.
However, Goldman Sachs analysts say that Russian oil exports are now limited by OPEC quotas rather than sanctions. So even if sanctions are eased, it’s not clear how much extra oil will be available.
OPEC recently decided to extend a planned increase in production of 138,000 barrels per day. This could put pressure on oil prices.
A day earlier, oil prices had fallen by about 2% and hit a 12-week low due to news about Ukraine and concerns over global economic growth.
New US tariffs are also affecting the market. Trump’s tariffs on imports from Canada and Mexico will come into effect on March 4. This includes energy products from Canada being subject to a 10% duty, while tariffs on Chinese goods will rise from 10% to 20%.
Russian forces have launched 99 drones at Ukraine overnight, according to Ukraine’s Air Force. The first explosions occurred around 3 am local time, and a fire broke out at the facility as a result.
Ukraine has reported that its forces suffered over 1,340 casualties in just one day. However, through the “Bring Kids Back UA” initiative, at least 1,233 children have been safely returned home from Russian-occupied areas.
The Kremlin is seeing Trump’s decision as a positive development for Russia. US Vice President JD Vance has also criticized Zelensky for showing a lack of willingness to engage in peace talks, which reflects the will of the American people according to Trump.
In Odesa Oblast, Governor Oleh Kiper said that Russian strikes have damaged energy infrastructure and caused power cuts in parts of the city.
US President Donald Trump has ordered all military aid to Ukraine suspended on March 3. This is putting pressure on Zelensky.
The US and Ukraine are making progress on a key mineral agreement that could strengthen long-term economic ties and pave the way for further security assistance, said Congressman Brian Fitzpatrick on March 3.
The White House has also directed the State and Treasury departments to compile a list of sanctions that could be lifted. This is a sign that Trump’s administration is considering easing sanctions.
Financial troubles have forced eight coal companies in Russia’s Kemerovo Oblast to halt operations. This has left hundreds of miners without pay for months, according to Governor Ilya Seredyuk.
President Volodymyr Zelensky made the remark on X, saying that negotiations were still in their early stages and that a settlement with Moscow remains a distant prospect.
The Kyiv Independent went to the streets of Kyiv to ask Ukrainians what they think about the now infamous meeting between Trump, Vance, and Zelensky. Ukraine’s international bonds fell to their lowest point in over a month on March 3 due to the heated exchange between the two leaders, Reuters reported.
Read More @ kyivindependent.com
