Oil prices fall on potential Ukraine peace talk
Published: 02:02 PM,Feb 13,2025 | EDITED : 06:02 PM,Feb 13,2025
Benchmarks lost more than 2% on Wednesday after US President Donald Trump said Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy expressed a desire for peace — Reuters
LONDON: Oil prices fell slightly on Thursday as a potential peace deal between Russia and Ukraine continued to exert downward pressure, along with rising crude inventories in the US.
Brent futures were down 42 cents, or 0.6%, at $74.76 a barrel , while US West Texas Intermediate (WTI) crude dropped 40 cents, or 0.6%, to $70.97.
Both benchmarks lost more than 2% on Wednesday after US President Donald Trump said Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy expressed a desire for peace in separate phone calls with him. Trump then ordered US officials to begin talks on ending the war in Ukraine.
That news, along with Wednesday's US oil inventories data, offset concerns about higher US inflation numbers that could lead the Federal Reserve to take a cautious approach to interest rate cuts in 2025, said PVM analyst John Evans.
Russia, the world's third-largest oil producer, has faced sanctions on its crude exports since its invasion of Ukraine nearly three years ago. These restrictions have supported higher prices.
ANZ analysts said oil prices declined due to 'optimism that risks to crude oil supplies would ease' following the potential peace talks, citing existing US and EU sanctions.
'Signs of tightening supply have been pushing up oil prices in recent weeks,' they said. 'US sanctions on Russian oil companies and vessels are said to have exacerbated the situation.' Additionally, a rise in US crude oil inventories weighed on the market. US crude stocks rose more than expected last week, according to data from the Energy Information Administration (EIA). — Reuters
Brent futures were down 42 cents, or 0.6%, at $74.76 a barrel , while US West Texas Intermediate (WTI) crude dropped 40 cents, or 0.6%, to $70.97.
Both benchmarks lost more than 2% on Wednesday after US President Donald Trump said Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy expressed a desire for peace in separate phone calls with him. Trump then ordered US officials to begin talks on ending the war in Ukraine.
That news, along with Wednesday's US oil inventories data, offset concerns about higher US inflation numbers that could lead the Federal Reserve to take a cautious approach to interest rate cuts in 2025, said PVM analyst John Evans.
Russia, the world's third-largest oil producer, has faced sanctions on its crude exports since its invasion of Ukraine nearly three years ago. These restrictions have supported higher prices.
ANZ analysts said oil prices declined due to 'optimism that risks to crude oil supplies would ease' following the potential peace talks, citing existing US and EU sanctions.
'Signs of tightening supply have been pushing up oil prices in recent weeks,' they said. 'US sanctions on Russian oil companies and vessels are said to have exacerbated the situation.' Additionally, a rise in US crude oil inventories weighed on the market. US crude stocks rose more than expected last week, according to data from the Energy Information Administration (EIA). — Reuters