Oil Prices Drop After US, Ukraine Presidents Fall Out

Brent crude settled at $73.18 a barrel after it went down by 86 cents or 1.16 per cent and the US West Texas Intermediate (WTI) crude futures finished at $69.76 a barrel after losing 59 cents or 0.84 per cent.

An on-camera argument in the Oval Office broke out on Friday night between US President Donald Trump and Ukrainian President Volodymyr Zelenskiy over a possible cease-fire agreement in the Russia-Ukraine war.

In the interview monitored by Business Post, President Trump and Vice President JD Vance laid into Mr Zelenskiy, leading to a shouting match with the US leaders accusing the Ukrainian leader of being disrespectful.

President Trump threatened to withdraw support for Ukraine and Zelenskiy left the White House without signing an agreement for joint development by the two countries of Ukraine’s mineral resources.

Meanwhile, the market is also bracing for the US’ new tariffs and Iraq’s decision to resume oil exports from the Kurdistan region.

The American President said his proposed 25 per cent tariffs on Mexican and Canadian goods will take effect on March 4, along with an extra 10 per cent duty on Chinese imports.

A tariff war could slow global growth, spark inflation and, in turn, suppress crude demand.

Iraq, the second largest oil producer in the Organisation of the Petroleum Exporting Countries (OPEC) after Saudi Arabia, is set to announce the resumption of oil exports from the semi-autonomous Kurdistan region through the Iraq-Turkey pipeline, according to an Iraqi oil ministry statement.

The country’s oil ministry said it will export 185,000 barrels per day through state oil marketer SOMO, and that quantity will gradually increase.

Despite the expected announcement, eight international oil firms operating in the Kurdistan region said they would not be resuming exports on Friday as there was no clarity on commercial agreements and guarantees of payment for past and future exports.

The resumption of exports raises questions about how Iraq will comply with its OPEC+ obligations, having already regularly produced above its quota and with the alliance delaying return of voluntary cuts in April, the increase in Iraq will lead to overproduction.