Oil Prices Below $60 over Russian-Ukraine Peace Optimism
Oil prices fell on Tuesday on optimism over a potential Russia-Ukraine peace deal that could ease sanctions on Russian crude. The market anticipates a supply glut as predicted by the World Bank and other energy agencies will reduce global prices of crude in the not-too-distant future.
Brent Crude futures prices traded down by 2.10% to $59.85 per barrel on Tuesday. Also, the U.S. benchmark, WTI Crude, declined by 2.22% to $55.56 per barrel.
US President Donald Trump said he held extensive talks with European leaders on the Ukraine-Russia war, noting that the diplomatic process was proceeding in a “cautious but positive” manner.
Trump’s remarks came after US officials announced that significant progress had been made in talks held in Berlin on a “peace package” for Ukraine that includes strong security guarantees similar to NATO’s Article 5.
Experts said these developments have increased expectations that US sanctions on Russian oil could be lifted in the near term, creating additional supply pressure in the markets.
Meanwhile, ongoing tensions between the US and Venezuela are limiting the decline in prices.
In a statement published on the website of the US Southern Command (SOUTHCOM), it was reported that, on the orders of Defense Secretary Pete Hegseth, air and naval strikes were carried out yesterday in the eastern Pacific against three vessels alleged to be carrying drugs and linked to terrorist organizations.
Separately, Venezuela’s state oil company PDVSA said it had been targeted by a cyberattack, holding the US responsible.
According to statements reported in the national media, the cyberattack on PDVSA was alleged to be part of a US strategy aimed at seizing Venezuelan oil.
Trump had previously signed an executive order instructing the broader and more effective use of the military to combat Latin America-based drug cartels on the ground.
In this context, the US deployed a naval force consisting of submarines and warships off the coast of Venezuela in late August, while Defense Secretary Hegseth said the US military was ready for operations in Venezuela, including regime change. Naira Diverges, Exchange Rates Gap Collapses to N25
