Crude oil prices climbed as investors reacted to renewed geopolitical tensions. Brent crude rose by 0.37%, trading at $72.69 per barrel, while the U.S. benchmark, West Texas Intermediate (WTI), increased to $69.53 per barrel.
The rise in oil prices followed a tense meeting between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskyy. A disagreement during their Oval Office discussion led to the cancellation of a scheduled joint press conference, raising concerns about diplomatic stability. Adding to the uncertainty, a proposed rare earth agreement between the U.S. and Ukraine failed to materialize, further straining relations.
Meanwhile, European leaders have reaffirmed their support for Ukraine, with Zelenskyy stating in a video address that Europe is showing “even greater unity and stronger readiness for cooperation.”
Market analysts believe that if peace talks gain traction, the resulting decrease in geopolitical risk could push oil prices downward. However, the current uncertainty is keeping energy prices elevated. ING analysts noted that “the market’s expectations for a reduction in sanctions have shifted, causing oil prices to rise by more than 1% in early trading.”
In addition to geopolitical concerns, the U.S. government has confirmed new tariffs on Mexico and Canada, set to take effect on March 4, along with an additional 10% tariff on Chinese imports. Economists warn that these trade restrictions could slow global economic growth, weaken energy demand, and fuel inflation.
Despite these pressures, China’s economy is showing signs of resilience. Official data indicates that China’s manufacturing sector expanded at its fastest pace in three months in February, limiting downward pressure on crude oil prices. Investors will closely watch China’s annual parliamentary meeting on March 5 for potential economic stimulus measures.
