Brent Crude Drops Below $60 Amid Ukraine Peace Talk Hopes
हिंदी में सुनें
Listen to this article in Hindi
Brent crude oil prices dipped below $60 a barrel as optimism surrounding potential Ukraine peace talks increased, impacting global oil supply dynamics.
Brent crude oil prices experienced a 2% decline early Tuesday, falling below $60 per barrel for the first time since May, fueled by growing hopes for a peaceful resolution in Ukraine.
As of 9:47 a.m. ET, Brent Crude futures were trading at $59.29 a barrel, a decrease of 2.10%. The U.S. benchmark, West Texas Intermediate (WTI) crude, also fell, trading at $55.56 per barrel, down by 2.22%.
Both benchmarks are showing significant year-to-date losses. WTI has plunged 22% since the start of the year and is currently on track for its worst annual performance since 2018. Brent crude has lost 20% in 2025, marking its steepest yearly decline since the pandemic-affected year of 2020.
The recent progress in discussions regarding a potential peace agreement in Ukraine has put downward pressure on oil prices. Optimism is rising that a deal could be reached to end the conflict between Russia and Ukraine. Reports indicate that U.S. officials have proposed NATO-style security guarantees for Ukraine during talks with Kyiv in Berlin. Former U.S. President Donald Trump noted that negotiators are now "closer now than we have been ever."
A successful peace agreement could lead to the easing of sanctions currently imposed on Russian oil flows, potentially increasing supply in a global market already considered well-supplied.
According to Warren Patterson and Ewa Manthey, commodities strategists at ING, "Oil markets will be watching developments closely, given the significant supply risk from sanctions on Russia. While Russian seaborne oil exports have held up well since the imposition of sanctions on Rosneft and Lukoil, this oil is still struggling to find buyers. The result is a growing volume of Russian oil at sea." They also noted that India, a major importer of Russian crude since the start of the war, is expected to see its imports fall to around 800,000 barrels per day this month, a decrease from approximately 1.9 million barrels per day in November.
By Charles Kennedy for Oilprice.com
