WTI falls near $57.50 as US-Russia-Ukraine peace talks progress
WTI price falls as US efforts to advance a Russia-Ukraine peace deal raise the prospect of increased crude supply.
Rubio said Geneva talks were “very worthwhile,” the most productive in “a very long time.”
US sanctions on Rosneft and Lukoil have stranded nearly 48 million barrels of Russian crude at sea.
West Texas Intermediate (WTI) Oil price extends its losing streak for the fourth successive session, trading around $57.70 per barrel during the European hours on Monday. Crude Oil prices decline as the United States (US) pushes for a Russia-Ukraine peace deal that could boost crude flows into an already well-supplied market.
Senior US and Ukrainian officials said Sunday that progress is being made on a US-backed proposal to end the conflict. US Secretary of State Marco Rubio described the talks in Geneva as “very worthwhile,” calling it the most productive day in “a very long time,” while also downplaying the Thursday deadline set by President Donald Trump for Ukraine’s response.
However, several European allies worry that the proposal tilts too far in Moscow’s favor. If a deal is reached, it could result in sanctions on Russian Oil being lifted, potentially adding more supply to a market already expected to face a substantial surplus next year.
Reuters quoted IG analyst Tony Sycamore as saying in a note that “The selloff was triggered mainly by President Trump’s forceful push for a Russia-Ukraine peace deal, which markets see as a fast track to unlocking substantial Russian supply.”
According to the report, progress toward a deal outweighed the near-term disruption caused by US sanctions on state-owned Rosneft and private producer Lukoil, which took effect Friday and has left nearly 48 million barrels of Russian crude stranded at sea.
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