Oil rallies as Russia-Ukraine ceasefire hopes fall through
Oil has gained after German Chancellor Friedrich Merz said a long-anticipated meeting between Russian President Vladimir Putin and Ukrainian counterpart Volodymyr Zelensky will not take place.
IMAGE: Flags of Russia and Ukraine. Getty Images
Expectations for such a meeting had grown following Putin’s talks with US President Donald Trump earlier this month.
However, speaking at a recent press conference alongside French President Emmanuel Macron, Merz said, “it is clear that a meeting between President Zelensky and President Putin will not take place.”
Brent’s price has moved higher as his remarks have faded hopes for a Russia-Ukraine ceasefire deal. “Oil prices moved higher yesterday after the German Chancellor poured cold water on hopes for a meeting between Zelensky and Putin,” remarked two analysts from ING Bank.
Public statements like this strongly influence market expectations, given Germany’s active role as mediator to resolve the conflict. The German Chancellor’s remarks have provided a “blow to hopes” for a peace deal between Ukraine and Russia, ING Bank’s analysts added.
With no ceasefire deal in sight, sanctions and secondary tariff risks remain an overhang for the oil market, according to market analysts.
“It brings back the risk of the Trump administration applying additional sanctions on buyers of Russian crude in an effort to keep any ceasefire talks alive,” said ANZ Bank’s senior commodity strategist Daniel Hynes.
By Aparupa Mazumder
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