Oil prices fell on Thursday as expectations of a potential peace deal between Ukraine and Russia raised hopes for the removal of sanctions disrupting supply flows. Additionally, U.S. President Donald Trump’s plan to impose reciprocal tariffs added concerns about inflation.
Key Highlights:
- Brent crude oil fell by $0.55 (0.73%) to $74.63 per barrel.
- West Texas Intermediate (WTI) dropped $0.52 (0.73%) to $70.85 per barrel.
- On Wednesday, prices declined by more than 2% after Trump stated that Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky expressed a willingness for peace talks.
- Russia, the world’s third-largest oil producer, has been impacted by U.S. and EU sanctions, which previously supported higher oil prices.
Market Analysis:
- Optimism over a potential peace deal has reduced concerns about supply disruptions.
- U.S. and EU sanctions on Russian oil exports had been contributing to tightening global supply.
- Trump’s trade policies could slow economic growth, reducing oil demand.
- U.S. crude oil inventories increased by 4.1 million barrels, exceeding market expectations, which may lead to further downward pressure on prices.
This shift in oil prices reflects a combination of geopolitical developments and economic policies that could reshape global energy markets in the coming months.
