Oil prices little changed as market waits for news on possible Russia-Ukraine peace

NEW YORK: Oil prices were little changed on Friday as the market waits for news about a possible Russia-Ukraine peace deal and interest rate decisions from central banks around the world. Prices lacked direction despite concerns over possible disruptions from a U.S. blockade of Venezuelan tankers.

Brent futures rose 13 cents or 0.2% to $59.95 per barrel at 10:54 a.m. EST (1554 GMT), while U.S. West Texas Intermediate (WTI) crude rose 16 cents or 0.3% to $56.31.

That put Brent and WTI down about 2% so far this week after both crude benchmarks fell about 4% last week.

As U.S. President Donald Trump seeks an end to Europe’s deadliest conflict since World War Two, Russian President Vladimir Putin said the onus was on Ukraine and Europe to make the next move toward peace.

European Union leaders decided on Friday to borrow cash to loan 90 billion euros ($105 billion) to Ukraine to fund its defense against Russia for the next two years rather than use frozen Russian assets, sidestepping divisions over an

unprecedented plan to finance Kyiv with Russian sovereign cash.

Putin offered no compromise on Friday on his terms for ending the war in Ukraine and accused the European Union of attempting “daylight robbery” of Russian assets.

Ukraine, meanwhile, struck a Russian “shadow fleet” oil tanker in the Mediterranean Sea with aerial drones for the first time, an official said on Friday, reflecting the growing intensity of Kyiv’s attacks on Russian oil shipping.

“The (oil) complex is posting small gains in holding above lows established earlier this week as it awaits further guidance regarding Ukraine/Russian peace talks as well as fresh headlines out of Venezuela as to the potential impact of the apparent Trump tanker blockade,” analysts at energy advisory firm Ritterbusch and Associates said in a note.

Trump told NBC News in an interview that he was leaving the possibility of war with Venezuela on the table.

Uncertainty over how the U.S. would enforce Trump’s intent to block sanctioned tankers from entering and leaving Venezuela tempered geopolitical risk premiums, IG analyst Tony Sycamore said.

Venezuela, which pumps about 1% of global oil supplies, on Thursday authorized two unsanctioned cargoes to set sail for China, said two sources familiar with Venezuela’s oil export operations.

Interest rates

Central banks in big economies are signalling a possible change of stance on interest rates, which are used to keep inflation in check.

Higher interest rates increase the cost of borrowing for homes and businesses, which can reduce economic growth and oil demand.

The Bank of Japan raised interest rates on Friday to levels unseen in 30 years, taking another landmark step in ending decades of huge monetary support and near-zero borrowing costs.

European Central Bank policymakers warned on Friday about oversized risks around their latest economic projections, making the case for caution in setting policy and not taking the option of another interest rate cut off the table just yet.

New York

Reserve President John Williams told CNBC on Friday he does not see an imminent need to follow last week’s interest rate cut with another reduction in borrowing costs, adding that new inflation data is being buffeted by distortions.