Global oil prices are falling due to expectations of a peace agreement between Ukraine and Russia
On February 13, global oil prices fell amid expectations that a possible peace deal between Ukraine and Russia would lead to the lifting of sanctions that had previously caused supply disruptions. An additional factor was the increase in crude oil reserves in the US, which also affected the market. About this informs Reuters.
Brent futures fell 68 cents, or 0.9%, to $74.50 a barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude was down 65 cents, or 0.9%, at $70.72.
The day before, Brent and WTI lost more than 2% in value after US President Donald Trump said that Volodymyr Zelenskyi and Vladimir Putin expressed their desire for peace in telephone conversations with him. In response, Trump instructed high-ranking US officials to start negotiations on ending the war in Ukraine.
Analysts at ANZ said in a note that the fall in oil prices was due to “optimism that risks to crude oil supplies will diminish” amid news of potential peace talks. They also pointed to the US and EU sanctions that have affected production volumes in Russia.
Another influencing factor was the growth of crude oil reserves in the USA, the largest consumer of this raw material in the world. Stockpiles rose more than expected last week, according to data from the Energy Information Administration (EIA) released on Wednesday.
