Oil yields with the market attentive to the Trump-Zelensky summit

Oil prices fell on Friday, amid expectations that the upcoming meeting of the presidents of the United States and Ukraine will reduce the geopolitical risk premium applied by the market.

Donald Trump and Volodymyr Zelensky are expected to meet in Florida on Sunday to discuss the thorny issue of territories, as part of negotiations to end the war with Russia.

After the Christmas holiday, the price of a barrel of North Sea Brent for delivery in February fell 2.57% to $60.64.

“They were going to do it sooner,” Trump said in the interview published this Friday. “And I said, ‘No, we’re going to give a Christmas present.’… They didn’t believe that was going to happen, but we hit them hard. All the camps were decimated.”

The barrel of West Texas Intermediate (WTI) for delivery in the same month fell 2.76% to $56.74.

The meeting between Trump and Zelensky will occur days after the Ukrainian president revealed the details of the new US plan to end the conflict. Moscow has criticized that version of the proposal and accused kyiv of “torpedoing” the negotiations.

Eric Teal, chief investment officer at Comerica, explained earlier this week that “the prospects for peace between Ukraine and Russia” along with “concerns about oversupply” have “put downward pressure on oil prices.”

According to analysts, an agreement with Ukraine would allow Russia to export more oil, thanks to the cessation of Ukrainian attacks against its infrastructure and the likely lifting of US sanctions.