Oil Prices Dip Amid Potential Ukraine Peace Talks and Rising U.S. Crude Stocks.
Oil prices edged lower on Thursday as the possibility of peace negotiations between Russia and Ukraine, coupled with a rise in U.S. crude inventories, put downward pressure on the market.
Brent crude futures fell by 42 cents, or 0.6%, to $74.76 per barrel as of 0900 GMT, while U.S. West Texas Intermediate (WTI) crude declined by 40 cents, or 0.6%, to $70.97 per barrel.
The decline followed a more than 2% drop on Wednesday after former U.S. President Donald Trump stated that Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky had shown interest in peace talks during separate phone calls. Trump reportedly directed U.S. officials to initiate discussions on resolving the conflict.
Related Posts
According to PVM analyst John Evans, this development, along with U.S. crude inventory data, outweighed concerns over inflation figures that might influence the Federal Reserve’s approach to interest rate cuts in 2025.
Russia, the world’s third-largest oil producer, has faced international sanctions on its crude exports since its 2022 invasion of Ukraine, which have helped sustain higher oil prices.
ANZ analysts noted that oil prices fell due to optimism that potential peace talks could ease risks to crude supplies. However, they highlighted that previous U.S. and EU sanctions had already contributed to tightening supply conditions.
Adding to the pressure on oil prices, data from the U.S. Energy Information Administration (EIA) revealed a larger-than-expected increase in U.S. crude inventories last week, reinforcing concerns about demand levels in the world’s largest oil-consuming nation.
