Oil Prices Slip, Energy Stocks Pause As Trump-Putin Call Signals Ukraine Ceasefire Progress

Oil prices tumbled Tuesday afternoon as traders reacted to President Donald Trump‘s call with Russian President Vladimir Putin, which laid the groundwork for a potential ceasefire in Ukraine.

The West Texas Intermediate light crude, tracked by the United States Oil Fund USO, fell over 1% to $67 a barrel, reversing earlier session gains and snapping a two-day winning streak.

Energy stocks, which on Monday had posted their best two-day streak since October 2022, took a breather as the market digested the geopolitical developments.

What Was Discussed In the Trump-Putin Call?

According to a White House readout, Trump and Putin agreed to an immediate halt on attacks targeting Russian and Ukrainian energy and infrastructure sites for 30 days. Additionally, they outlined plans for negotiations in the Middle East to establish a maritime ceasefire in the Black Sea.

Trump, in a post on Truth Social, described the call as "very good and productive," adding that "many elements of a Contract for Peace were discussed." He indicated that both Putin and Ukrainian President Volodymyr Zelenskyy "would like to see an end of the hostility.

My phone conversation today with President Putin of Russia was a very good and productive one. We agreed to an immediate Ceasefire on all Energy and Infrastructure, with an understanding that we will be working quickly to have a Complete Ceasefire and, ultimately, an END to this…

— Trump Posts on 𝕏 (@trump_repost) March 18, 2025

“We agreed to an immediate ceasefire on all energy and infrastructure, with an understanding that we will work quickly towards a complete ceasefire and, ultimately, an end to this very horrible war,” Trump wrote.

Putin, according to Russian sources, said that any resolution must be "comprehensive, sustainable, and long-term" while addressing Russia's security concerns. The Kremlin also stated that stopping foreign military aid to Ukraine is a key condition for de-escalation.

“The key condition for preventing escalation and pursuing a diplomatic resolution is the complete cessation of foreign military assistance and intelligence-sharing with Kyiv,” the Russian statement read.

How Energy Stocks Reacted

Energy stocks that had posted their strongest two-day rally since October 2022 paused their advance.

The Energy Select Sector SPDR Fund XLE traded flat by 3:00 p.m. ET, though it remains up over 5% year-to-date, making it the best-performing S&P 500 sector.

Among key oil equities, Exxon Mobil Corp. XOM slipped 0.2%, while Chevron Corp. CVX edged 0.7% higher.

Meanwhile, natural gas stocks outperformed, with EQT Corp. EQT and Antero Resources Corp. AR climbing 2% and 3%, respectively. Antero extended its winning streak to seven consecutive sessions.

U.S. natural gas prices at the Henry Hub facility rose 0.9% to $4.095 per million British thermal units.

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