Oil Prices Below $60 on Russia-Ukraine Peace Optimism
Global prices of crude oil are tracking below $60 per barrel on Friday as markets price in optimism over Russia-Ukraine ongoing peace agreement discussions.
Brent crude was trading at $59.40 per barrel, down around 0.06% from the previous close of $59.44. US benchmark West Texas Intermediate (WTI) also decreased by about 0.08% to $55.82, compared to $55.87 in the prior session.
At a press conference at the White House, US President Donald Trump called on Kyiv to “move quickly on an agreement” ahead of Russia-Ukraine talks planned to be held in Miami over the weekend.
Officials, speaking to US media on condition of anonymity, confirmed that the Russian official attending talks expected to take place in Miami on Saturday will be Kirill Dmitriev, head of the Russian Direct Investment Fund.
According to experts, these statements have reinforced expectations that the diplomatic process could gain momentum, increasing the perception that Russian oil could flow more steadily to global markets and thereby exerting downward pressure on oil prices.
Meanwhile, remarks by Mexican President Claudia Sheinbaum stating that they oppose external interventions in Venezuela and are ready to contribute in any way to a peaceful solution in the region are also weighing on oil prices.
Referring to President Trump’s criticism of Mexico’s close ties with Cuba, Sheinbaum said Mexico holds a different view from Washington on Cuba and will continue cooperation.
In a statement on Dec. 18, Sheinbaum had called on the UN to step in to prevent possible “bloodshed” in the region after the US increased its military presence off Venezuela’s northern coasts. President Trump, for his part, said he had ordered the blockade of all sanctioned Venezuela-origin oil tankers.
In response, the Venezuelan government accused the US of “piracy” after it seized an oil tanker off the country’s coast and took the matter to the UN Security Council.
Experts say statements emphasising peace and diplomacy have eased concerns over potential supply disruptions from Venezuela, lowered the geopolitical risk premium in oil markets, and therefore had a downward impact on prices.
Also, the rise of the US dollar against other currencies was effective in the decline in oil prices. The US dollar index increased by 0.15% to 98.235. The strong dollar is expected to reduce demand by making oil more expensive for foreign currency users. Naira Falls as FX Intervention Fails to Ease Market Pressure
