Oil prices rose by 2% after the Trump-Zelenskyy spat

Oil prices rose by more than $1 on December 29 amid investors' assessment of negotiations between the US and Ukrainian presidents regarding a potential peace agreement. An additional factor supporting prices was the risk of possible oil supply disruptions from the Middle East, reports Reuters.

Brent crude futures rose by $1.2, or 2%, to $61.45 per barrel as of 13:00. U.S. West Texas Intermediate crude gained $1.21, or about 2.1%, to $57.93. Both benchmarks fell more than 2% on Friday.

"Energy markets have risen as geopolitical events have supported crude oil prices, with Brent crude gradually rising amid renewed Middle East tensions and shifts in peace talks over Ukraine," said IG analyst Axel Rudolf.

"The Middle East has also been restless recently due to Saudi Arabia’s airstrikes in Yemen… perhaps this is what is causing market concern about potential supply disruptions," explained Ian An, an analyst at Haitong Futures in China.

Saudi Arabia, the world's largest oil exporter, is expected to lower the official price of its flagship Arab Light crude for Asian buyers for the third consecutive month in February. This reflects a weakening spot market amid oversupply.

In addition, investors are awaiting the release of US inventory data for the week ending December 19. According to a Reuters poll, US crude oil inventories likely fell last week, while distillate and gasoline inventories may have risen.

The price of WTI crude oil is expected to fluctuate between $55 and $60 per barrel. The market will also remain focused on possible steps by the United States to limit Venezuelan oil supplies, as well as the potential consequences of US strikes on ISIS targets in Nigeria, said IG analyst Tony Sycamore.

• On December 16, the price of Brent crude oil for the first time since May 2025 fell below the psychological mark $60 per barrel. An additional factor was the revival of hopes for an agreement to end Russia's war against Ukraine.