“Oil prices fall amid expectations of progress in peace talks between Russia and UkraineBrent crude futures fell 0.5% to $62.8 a barrel, while US West Texas Intermediate crude futures lost 0.6% to $58.33. The price
decline is linked to expectations of progress in peace talks between Russia and Ukraine, which could lead to the lifting of
sanctions on Russian supplies.
”, — write: unn.ua
DetailsBrent crude futures fell 33 cents, or 0.5%, to $62.8 a barrel by 04:45 GMT (06:45 Kyiv time), while US West Texas Intermediate crude futures lost 32 cents, or 0.6%, to $58.33.
On Wednesday, both contracts closed up about 1% as investors assessed the risk of oversupply and the prospects for a peace agreement between Russia and Ukraine.
US envoy Steve Witkoff is reportedly traveling to Moscow next week with other senior US officials for talks with the Russian leadership on a possible plan to end the war in Ukraine.
However, Russia will not make serious concessions on a peace plan, a senior Russian diplomat said on Wednesday after a leaked recording of a conversation involving Witkoff showed he was advising.
“Oil prices are gradually falling this morning, mainly on hopes of a breakthrough in a peaceful settlement in Ukraine and a broader write-off of the war premium, but the market still feels weak and uncertain ahead of the OPEC+ meeting and the lull in the US due to Thanksgiving,” said Priyanka Sachdeva, Senior Market Analyst at Phillip Nova.
The Organization of the Petroleum Exporting Countries and its allies are likely to keep production levels unchanged at a meeting on Sunday, three OPEC+ sources told Reuters on Tuesday. Some members of the organization, which produces about half of the world’s oil, have been increasing production since April to increase their market share.
“The reality is that prices remain vulnerable, and any significant progress in peace talks will lead to a freer flow of Russian crude into an already oversupplied market, contributing to a medium-term decline in oil prices with short-term price spikes,” Sachdeva said.
Meanwhile, curbing the decline in oil prices contributed to rising expectations of a US Federal Reserve interest rate cut in December. A lower rate typically stimulates economic growth and increases demand for oil.
“The oil market is stuck between potential progress in peace talks between Russia and Ukraine and how this will affect oil supply amid broader rising risks in trading as expectations of a US Federal Reserve interest rate cut in December grow,” ING analysts said in a client note.
Sanctions cut Russian oil exports by 15-20%, production to fall by 5% – OP27.11.25, 08:33 • 1714 views