Oil prices were mixed on Tuesday, with Brent crude futures closing up 0.03% at a settlement price of $73.02 per barrel, while U.S. crude futures fell 0.16% to settle at $69 per barrel. Market sentiment was influenced by a ceasefire agreement between Russia and Ukraine, which alleviated concerns about global supply tightening due to U.S. threats to impose tariffs on countries purchasing Venezuelan oil.
On Tuesday, the U.S. reached an agreement with Ukraine and Russia, with both sides agreeing to a ceasefire in the Black Sea and to suspend attacks on each other's energy facilities. At the same time, the U.S. pledged to push for the lifting of some financial sanctions against Russia. Although Kyiv and Moscow both stated that they would rely on Washington to enforce the agreement, both countries remain skeptical about the other's commitment to the terms.
Phil Flynn, Senior Analyst at Price Futures Group, noted: "A ceasefire between Russia and Ukraine could open the door to easing sanctions on Russian oil." Additionally, U.S. President Trump previously announced a 25% tariff on countries importing oil and gas from Venezuela, which has fueled the rise in oil prices. Venezuela is one of the world's major oil exporters.
Meanwhile, OPEC+ might continue to increase oil production in May as planned, due to stable oil prices and the alliance's strategy to compel some member countries to reduce production to compensate for past overproduction. Four sources told Reuters that this decision could further impact the market's supply and demand balance.
