24 Mar 2025

WTI prices are experiencing a decline as discussions between Ukrainian and US officials on Sunday may result in an increase in Russian oil supply. Ukrainian Defense Minister Rustem Umerov has underscored the importance of protecting energy and critical infrastructure. Additionally, Iraq is working towards enhancing its oil production capacity to exceed 6 million barrels per day (bpd) by 2029.

The price of West Texas Intermediate (WTI) crude oil has continued to fall for the second consecutive session, trading at approximately $68.00 per barrel during Monday's Asian trading hours. This decrease is attributed to a reduction in geopolitical tensions following the talks in Riyadh, which could potentially lead to a rise in Russian oil supply in global markets, as reported by Reuters.

Negotiations for a ceasefire are still in progress, with President Trump calling for an end to the three-year conflict. Minister Umerov has emphasized the need for protective measures for energy and critical infrastructure. In a related development, a US delegation is scheduled to meet with Russian officials on Monday to advocate for a ceasefire in the Black Sea region and to promote broader de-escalation efforts in Ukraine.

Toshitaka Tazawa, an analyst at Fujitomi Securities, was quoted by Reuters, highlighting that "Expectations for advancements in peace talks between Russia and Ukraine, along with the possibility of the United States easing sanctions on Russian oil, have contributed to a decline in prices." He further mentioned that investors are exercising caution as they evaluate future production trends of OPEC+ beyond April.

In the Middle East, Iraq is set to increase its oil production capacity to over 6 million barrels per day (bpd) by 2029, as reported by the state news agency. Bassem Mohamed Khodeir, the undersecretary of Iraq's Oil Ministry, indicated that this objective will be pursued through oil exploration and extensive drilling initiatives, referencing a recent agreement with BP to redevelop four oil and gas fields in Kirkuk.